Small service provider

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This query is : Resolved

abanerji (Querist)

11 March 2008 Small service provider - annual exemption limit increased from Rs. 8 lacs to Rs. 10 lacs with effect from 1st April 2008

A long-time registered service tax assessee received the following payment during financial year 2007-8 :-
Amount excluding service tax and cess : Rs. 6.50 lacs
Amount of service tax and cess : Rs. 0.80 lacs
Amount including service tax and cess : Rs. 7.30 lacs

Upto what turnover level (excluding service tax and cess) during financial year 2007-8, would it allow the Rs. 10 lacs exemption to be availed in financial year 2008-9?

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)

11 March 2008 YES

Dayal

Dayal (Expert)

11 March 2008 The exemption is on the taxable amount ( excluding Service Tax)

IF the annual turnover for the financial year is below or equivalent to 10 Lacs the exemption can be exercised

In the instance case if the turnover is 6.50 lacs the exemption of 10 lacs can be enjoyed for the year 2008-09

Dayal

Dayal (Expert)

11 March 2008 I am treating the inquiry as closed.
Should you need any further inputs do let me know

jegannath G

jegannath G (Expert)

11 March 2008 but if you have received something as service tax then it is payable to Service tax department

abanerji

abanerji (Querist)

11 March 2008 Dear Mr. Dayal :

Thank you very much for your reply.

I just need clarity on one part of my query, i.e., what should be the maximum turnover (excluding service tax & cess) during 2007-8? If such turnover is more than Rs. 8 lacs for 2007-8, can the exemption still be availed in 2008-9?

The figures given in my query pertained to receipt of payments in 2007-8.

Hope I have been able to express myself.

Regards,

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)

12 March 2008 IN F.Y.2007-08 TURNOVER SHOULD NOT BE MORE THAN 10 LAKHS TO AVAIL EXEMPTION IN 2008-09

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