Service Tax

CA Kishan Kabra (CA) (173 Points)

08 July 2011  

Respected Sir,

I have one question about Service Tax  1st time exemption  of  Rs. 10 Lakhs.

First we are open a Proprietership firm, who's propriter Mr. Kishan applied for registration under Service Tax and get these Rs. 10 lakhs  exemption.

After sometime Mr. Kishan  Closed the propritership firm and and surrender Service Tax no. to Service Tax Deptt and clear all dues.

After that, Mr. Kishan  appointed as a director in newly incorporated Private Company and again applied for service tax registration under the name of Private Company an again company get exemption of  Rs. 10 lakhs.

Right Now, my question is that,

If same person get exemption of Service tax (Rs. 10 lakhs) in both cases is leagly valid or not under  "The finance Act 1994."