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Service tax exemption for every fy

Others 698 views 3 replies

kannansugumaran

tax consultant

44 Points Joined October 2011

Hi,

My client has total turnover (service charges received ) for FY 2011-12 is Rs. 32 lakhs and he availed the basic exemption of Rs.10 lakshs and he pay the service tax for the remaining Rs.22 lakhs , For the FY 2012-13 his turnover (Service charges received ) is Rs.4 Lakhs Do he have exemoption for this year also or he want to pay from the first amount

please clarify me

Kannan sugumaran

Replies (3)

aakash gupta

artical

24 Points Joined March 2010

He can not avail the exemption of ss p in current year becouse in last fy he has takan the benefit of ssp for the small service provder in current year he is not ssp becouse ssp condition is chek in previous fy thats is why he has to the service on 4 lac

Atinder Singh

Tax consultant

109 Points Joined November 2010

I agree with aakash gupta, you are required to pay S.T on receipts.

Ajit kumar Dubey

Taxation Manager

637 Points Joined September 2008

once the registration is taken, service tax is payable by the assessee irrespective of the current year's turnover. You will have to pay Service tax on accrual basis and not on receipt basis as a service provider.