My clients had issued biils for the service provided in the year 2006-07 as under :
basic amount Service Tax rate Service Tax Bill Amoun
400000 NIL NIL 400000 Payment realised in 2006-07
200000 10.2% 20400 220400 Payment realised in 2007-08
100000 12.24% 12240 112240 Payment realised in 2007-08
Bill in the year 2007-08
400000 Nil Nil 400000 Payment realised in 2007-08
What shud be the amount of threshold exemption in the year 2007-08. will it be the entire amount of Rs. 8.00 Lakh realised in the year 2007-08 or Rs. 400000 Billed and realised in the year 2007-08. If it is Rs. 8.00 Lakh , then what will be the treatment of the amount of Service Tax realised from the customers?
The Scheme of Threshold Exemption Limit applies to service providers whose aggregate value of Taxable services provided during the preceding financial year was less than the specified thresholf limit.