Exemption limit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2011 Prof fees for
Fin Year
2008 -09 7 lakh below exemption
2009-10 9.4 lakh also below exemption
2010 - 11 14 lakh

Out of the 14 lakh fees, service tax charged on 9 lakh and paid to the treasury.

Query : whether service tax has to be paid on 4 lakh only or on 14 lakh, since the limit has been crossed in fin. year 2010 -11.

But since the assessee has collected tax on 9 lakh, the service tax on 9 lakh to be paid.

or whether service tax is to be paid on the entire 14 lakh.

PUNEET GOYAL

PUNEET GOYAL (Expert)
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12 November 2011 As per NN 06/2005 dated 01.03.2005 last amended by NN 08/2005 dated 01.03.2008, you are not required to pay service tax on initial receipt upto rs. 10 lac. Therefore, you are required to pay service tax on rs 4 lac only.

However as per Section 73A of Finance Act 1994, if the assessee collect any amount in excess of what is actually required to be collected. In that case assessee is required to deposit the excess amount of service tax to the CG immediately.

In your case you are required to deposit service tax on rs 9 lac.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2011 Thanks for your prompt reply.
Also, i want to know what happens in the net year, when the fees are say 14 lakhs. will i get the exemption of 10 lakh again in the next year. Or will i have to pay the service tax on 14 lakhs.

PUNEET GOYAL

PUNEET GOYAL (Expert)
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14 November 2011 In next year, u will not get any exemption under above said notification number and u have to pay service tax on entire amount.

If u r satisfied with my reply then say thanks by clicking "THANK USER".

Message likes : 2 times

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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14 November 2011 Rs.10 lakhs exemption limit will allowed only one time. in next year service tax will be leave on entire amount of service receipts.
in your case service tax will be on Rs. 14 lakhs.

Message likes : 2 times

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