Very Very Urgent Query of Service Tax.......

Hi All..........

Pls Solve My below mentioned Service TAx Query....

A person has received a commission of Rs 14,00,000 in the very first year of his business, he has registered under Service Tax Act before liability exceeds 10,00,000.
Can he claim his initial exemption of Rs 10,00,000 ?
what will be amount on which the tax has to be paid? whether on 14,00,000 or 4,00,000?

Pls Reply Quick as possible …as its very urgent ……….

Regards: SANTOSH

Replies (6)

 The Service Provider should be in position to avail the exemption upto Rs. 10 Lacs. One of the conditions for availing exemption is that the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed rupees ten lakhs in the preceding financial year [Notification 6/2005 dated 1st March 2005 as amended]

In the instant case as the service provider did not provide or billed for any service in the preceeding financial year, he shall be eligible for exemption.

Needless to say that he will not be eligible for exemption in succeeding financial year.

 

Please visit following links for relevant circulars

https://www.servicetax.gov.in/notifications/notfns-2k5/st06-2k5.pdf

https://www.servicetax.gov.in/notifications/notfns-2k7/st04-2k7.pdf

https://www.servicetax.gov.in/notifications/notfns-2k8/st08-2k8.pdf

 

 

THANKS FOR SHARING............

4,00,000

Thanks sir....

 yes, you can claim the deduction of Rs.10,00,000.00.

Dear Santosh,

It will depend on the tax collected. If tax has been collected on total amount than total tax is required to be paid to the govt. And if the tax has been collected on the 4 lakh than tax on 4 lakh has to be paid. If nothing has been collected than tax has to be calculated for 4 lakh assuming that 14 lakh amount is inclusive of the tax.

 

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