S MURUGANANDHAN (CLERK) 08 October 2012
1. In the case of a lodge having declared tariff of both less than Rs.1000 and greater than Rs.1000 and the total receipts of tariff greater than Rs.1000 has not exceeded the basic limit of Rs.10,00,000, I feel that the no service tax is payable.
2. In the situation given in 1 above, if the total receipts of tariff greater than Rs.1000 has exceeded the basic limit of Rs.10,00,000 then the rate of service tax would be 7.416% (after abatement) on the tariff greater than Rs.1000 (The receipts of tariff less than Rs.1000 would be exempted and need not be taken for service tax liability caclulation)
Thanks in advance.
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sourav jain (INTERNAL AUDITOR) 08 October 2012
yes your view is correct , when turnover from taxable service exceed the exemption limit then SSP exemtion cannot be claimed.
Turnover from the hotel rent whose tarrif value is less than 1000 is exempted hence will not be included in calculation of exemption limit ,ie, 10 lakhs,