Chargeability of service tax

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This query is : Resolved

Girish Sharma (Querist)

14 June 2013 Dear Sir,

One of my client has taken service tax registration in financial year 2010-11 under renting of immovable property services and is charging service tax and filing returns in time. Now in the year 2011-12 and 2012-13 his rent receipts are below the exemption limit, so my query is as follows:
1. Whether I should continue charging service tax on the rent receipts below the exemption limit and file returns or

2. I should stop charging service tax and file nil returns only in the current financial year as my receipts in preceding years are less than the exemption limit.

My client does not want to surrender the certificate as the rent receipts may again cross the exemption limit in future.

Please clarify.

Thanks

CA Kapil Verma

CA Kapil Verma (Expert)

14 June 2013 you have to charge service tax , because exemption of 10 lac is one time only,

ones you have charge service tax, Then is will applicable so long whether your receipt go below exemption limit.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

15 June 2013 i) In financial year 2011-12, service tax has to be charged. In financial year 2012-13 no need to charge service tax since taxable turnover of financial year 2011-12 was less than the threshold limit. NIL RETURN FOR FINANCIAL YEAR 2012-13 HAS TO BE FILED.

ii) Can stop charging service tax in financial year 2013-14 since taxable turnover of financial year 2012-13 was below the threshold limit. NIL RETURN FOR FINANCIAL YEAR 2013-14 HAS TO BE FILED.

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Girish Sharma

Girish Sharma (Querist)

15 June 2013 Sir, Can you also refer to the provision or section where it is mentioned.

Thanks

Girish Sharma

Girish Sharma (Querist)

15 June 2013 Sir, Can you also refer to the provision or section where it is mentioned.

Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

15 June 2013 Please refer notification 6/2005-ST, 8/2008- ST and 33/2012-ST [Clause 2(viii)].

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