Transport operator

This query is : Resolved

vandana (Querist)
Follow

09 September 2010 One of my client is a transport operator. In P.Y.2007-08 his turnover was below 7 lacs so he was not liable to get registered before Service tax authority. In financial year 2008-09 his turnover is 8.92 lacs. As per notification the service tax thresolhold limit increases from 7 lacs to 9 lacs o.k. It is written that new limit will be applicable from 1-04-2008. so I am confused whether to advise him to go for registration or not because limit has been increased from 2009-10 but its applicability has started w.e.f.1-4-2008.

Please advise.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

09 September 2010 2005-06 -07 exemption upto Rs 4 lakhs provided the pr yr taxable services not exceeded that limit.
2007-08. Limit as wll as eligibility increased to Rs 8 lakhs. Therefore in your case since 2006-07 was 7 eligible. Since limt was 8 on 0,92 tax was payable.
Year 2008-098 limit increased to 10 lakhs for exemtpion and eligibility. In your case not liable upto Rs. 10 lakhs.

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