How to calculate basic exemption
This query is : Resolved
23 November 2012
Dear Sir,
One of my client has registered himself with service tax. In first year his total service comes to Rs.6,50,000. in second year it comes to Rs.6,00,000. & in current year it is Rs.3,75,000. So, my question is whether my client is liable to pay service tax or not considering basic exemption of Rs.10 lac every year. OR he is liable to pay service tax in second year when he crossed rs.10 lac that means in second year liable for Rs.2,50,000 & from third year full amount Rs.3,75,000/-.
Kindly advise.
Thanking You.
One of my client has registered himself with service tax. In first year his total service comes to Rs.6,50,000. in second year it comes to Rs.6,00,000. & in current year it is Rs.3,75,000. So, my question is whether my client is liable to pay service tax or not considering basic exemption of Rs.10 lac every year. OR he is liable to pay service tax in second year when he crossed rs.10 lac that means in second year liable for Rs.2,50,000 & from third year full amount Rs.3,75,000/-.
Kindly advise.
Thanking You.
Amol S Joglekar
(Expert)
23 November 2012
No service tax in all these years. First time when the limit will get exceeded is the crux.
CA Sahil Singla..
(Expert)
23 November 2012
Sir
Exemption of 10 Lac is available every year.
Exemption of 10 Lac is available every year.
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