I get a monthly rental income (Commercial) of Rs.1,00,000/- per month . So my annual gross income is Rs.12,00,000/-.
The service tax is to be calculated on gross income (12,00,000) minus exempted (10,00,000) = 2,00,000/- . so the service
@ 12.3% is 24,6000 . Is this way service tax be calculated
Exemption for small scale service provider whose aggregate value of clearances does not exceed Rs. 10 lakhs in the financial year. You will pay service tax on value of Rs. 2 lakhs.
| Originally posted by : edida raja | ||
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I get a monthly rental income (Commercial) of Rs.1,00,000/- per month . So my annual gross income is Rs.12,00,000/-. The service tax is to be calculated on gross income (12,00,000) minus exempted (10,00,000) = 2,00,000/- . so the service @ 12.3% is 24,6000 . Is this way service tax be calculated |
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Dear Sir,
You are required to charge service tax in your invoice after your income cross Rs.1000000.
In the given case from the 11th month you are required to chrge service tax @ 12.36%, the amount of service tax which you have received from your client is required to be deposited to the Govt.
However, as per POT rules, point of taxation will be earlier of the two:
(1) Date of invoice or,
(2) Date of payment
Therefore even if you have not received payment from your client bt bill has been raised by you then in this case you need to pay service tax to the govt within due date.
Regards,
Pinky Agarwal..
For the first year of collecting the rent, you need to collect Service Tax for the value which is exceeding Rs.10,00,000/-
And from next year onwards, Service tax is to be collected for total value of Rs.12,00,000/- (i.e. from the beginning).
Exemption is not available as the value of Service exceeds Rs.10,00,000/- in the previous year.
Hence, Service Tax = 12.36% of Rs.12,00,000/-
CAclubindia
