30 April 2008
An assessee has filed an option for availing exemption vide notification no. 4/2007 dated 1.3.2007. He wants to continue to avail exemption during the financial year 2008-09. Do he has to file any document for continuation of exemption or not? Secondly if he does not wish to avail exemption during 2008-09, do he has to file any document for the same? Shall he charge service tax in the year 2008-09 from the first bill or from the bill when service provided exceeds 10 Lakh? Do he has to pay tax from the very first receipt in 2008-09 or when it crosses 10 Lakh.
19 May 2008
No need to file any docs for availing or non availing this exemption AS such there is no requirement to file any declaration, but it is good to write a letter to jurisdictional officer for availing this exemption.
This is itself clear from the date of payment of Tax i.e., 5th of Next month/quarter. If we want exemption, no need to pay tax unless first total sum received from taxable service don’t exceed the exemption limit. In this period (below 10 Lacs recd),no need to file st 3 either.
This is optional exemption. So be careful about the first total sum received. If u dont want to take exemption, u can charge service tax from first bill, this will indicate itself that u have no opted for exemption. Any further
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