Applicability of service tax

This query is : Resolved

Nipesh Garg (Querist)
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28 April 2012 Dear Members,

I want confirmation in the below noted query

My client is a Company assessee providing hotel services by letting rooms. Now in respect to service tax my query is that in the financial year 2010-11 our receipts were Rs 23 Lacs with non applicability of service tax.

Now wef 01-05-2011 letting of rooms came under the preview of service tax.

My Query is that whether we have to charge service tax from 01-05-2011 or shall wait for receipts to cross 10 lacs and then start collecting service tax from customers.

Regards

Nipesh Garg

CA PARTH SHAH

CA PARTH SHAH (Expert)
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29 April 2012 you have to wait till your collection reaches 10 lakhs. on reaching 9 lakhs. you have to get registered your self as service provider with the dept

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Nipesh Garg

Nipesh Garg (Querist)
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29 April 2012 So as per your reply, Can we claim exemption on intial collection of Rs. 10 Lacs as Room rent and from Rs 10 lac onwards collect service tax from customers.

CA PARTH SHAH

CA PARTH SHAH (Expert)
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30 April 2012 yes. because the service you provide last year was not liable for service tax. SO you are considered as small service provider and so you will be exempt from paying service tax upto the receipt of Rs 10,00,000.

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