An assessee is earning rent from commercial property of Rs one lakh per month. During the previous year he recived rent of Rs12 lakhs. My question :-
1. Whether the assessee will be liable for Service Tax from 1.6.2007 since his last years rent was Rs12 lakh. ( since in the last year it was not txaable the recived will be take as NIL ?).
2. In case the exemption is allowed of Rs8 lakhs the same will be calculated from 1st April,2007 or from 1st June 2007 from which it is taxable.
thanks
| Originally posted by :DINESH GUPAT | ||
| " | An assessee is earning rent from commercial property of Rs one lakh per month. During the previous year he recived rent of Rs12 lakhs. My question :- 1. Whether the assessee will be liable for Service Tax from 1.6.2007 since his last years rent was Rs12 lakh. ( since in the last year it was not txaable the recived will be take as NIL ?). 2. In case the exemption is allowed of Rs8 lakhs the same will be calculated from 1st April,2007 or from 1st June 2007 from which it is taxable. |
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The previous years taxable service is nil and exemption contimue thill 31.5.2007. Therefore the 8 lakhs exemption is tobe reckoned from 1.6.2007 and not 1.4.2007. Assume the rent is 100k a month for the year is 1200k taxable is only 1000k and exemptionis 800k therefore ST payable on 200k. Since this matter is before the SC it maybe better to pay under protest so that if decided in favour refund canbe claimed.
The Company Started Business w.e.f 01.5.2009, now till 30.09.2009, they have made business Rs. 50 Lakhs.
Whether we will get Basic Exeption Rs. 10 Lakhs in calculating Service Tax paybale ?
What will be my tax liabilities?
Subrata
| Originally posted by :SUBRATA | ||
| " | The Company Started Business w.e.f 01.5.2009, now till 30.09.2009, they have made business Rs. 50 Lakhs. Whether we will get Basic Exeption Rs. 10 Lakhs in calculating Service Tax paybale ? What will be my tax liabilities? Subrata |
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WHATEVER YOU COLLECTED AS SERVICE TAX YOU HAVE TO PAY IT TO SERVICE TAX AUTHORITY <> THERE IS NO EXCUSE OF EXEMPTION
EXEMPTION IS ONLY A BARRIER TO PROTECT THE SMALL ENTERPENEURE FROM SERVICE TAX HAZARDS
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