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Ssi exemption to new assessee of service tax

Deepak Kumar (Chartered Accoountant) (270 Points)

24 May 2016

One of my client wants to register under serive tax for rent of Immovable property. He has given his property on rent from 1 May 2016. Rent amount is 100000/- P.M. Therefor total rent will be rs. 11 lacs for whole year. Now i want to know can he take ssi exemption in this case, & if yes how much service tax he has to pay for whole year.

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4 Replies

Praveen Tawania (Owner) (369 Points)
Replied 24 May 2016

Dear Member,

You can not claim SSI Exemption in this case, becasue for claiming SSI Exemption turnove should be less than Rs.10,00,000.

For detail information please contact at www.financemitra.co.in.

RAKESH PARMAR (Senior Accountant) (33 Points)
Replied 24 May 2016

Dear Deepak Sir,

As there is new registration under service tax will get SSI Exemption for Rs.10 lacs.

The ST will be levied on above Rs.10 Lacs and also the abatement of rent for immovable property is allowable above Rs.10 Lacs.

1st year of service always enjoy the SSI Exemption.

SPRao (Faculity Indirect Taxes) (806 Points)
Replied 24 May 2016

1.He can get registration around January, 2017, as he needs registration the moment he reaches the level of Rs. 900.000.

2. Every service provider is an SSP in the first year of activity. so on first 10 lacs he can claim exemption in first year and then pay tax on the rest.

3. next year on wards he will continue to pay tax on the whole of the amount charged.

4. the value for the purpose of tax is rent charged-- property tax paid if any.

5. if property tax is not known in advance, pay on full value, then adjust the amount within one year