Taxability of service tax

Save Share

This query is : Resolved

PRATEEK GOYAL (Querist)
Follow

23 January 2012 Sir,

A person provides manpower recruitment service. This is first year and the turnover have exceeded 9 lacs. Thus he had registered himself under service tax.

Also he has paid the applicable service tax for the last two quarters WITHOUT AVAILING THE SSI EXEMPTION.

However he is eligible for SSI exemption during this first year. And if that is the case, whether he is eligible to claim exemption by adjusting the tax in remaining quarters.

Also suggest if any other remedy avaliable.

Thanks.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

23 January 2012 Service tax exemption is optional one, assessee has to decide once, once opted you cannot change remaining part of the financial year. so once opted to pay the tax it cant be changed remaining period

Message likes : 1 times

Arun Gulati

Arun Gulati (Expert)
Follow

24 January 2012 once the exemption is not opted and the tax is paid in the first quarter of the finance year, later on exemption cannot be opted for the next quarter or part of the year of that financial year.

I agree with Mr. Krishnan point of view and there is no doubt as law is very clear on this issue.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now