Changeability of service tax?

This query is : Resolved

Monil R. Shah (Querist)
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03 September 2012 My client charged service tax in 1st year of registration to get CENVAT though he didn’t cross basic exemption limit. In second year can he avail the exemption limit of Rs.10L?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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03 September 2012 No, exemption can be claimed in the first year only. If he has not claimed the exemption then it is not allowed to take credit in the subsequent year

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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03 September 2012 If Client Services Not Exceed Rs. 10 Lacs During Last Year, Then Still He is SSI, & Can Claim Exemption for This Year.

But CENVAT Credit of Last Year Cant Be C/F, & No Benefit of CENVAT Credit is Available.

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Monil R. Shah

Monil R. Shah (Querist)
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03 September 2012 @Ayush: Though he start charging s.t. in 1st year?

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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03 September 2012 Tell Me Numerical Figure Closing Balance at Enf Year of First Year.

Actually, If U Claim Exemption in Any Particular Year, Then Balance Standing in Your Accounts as CENVAT Credit is Dismissed.

Monil R. Shah

Monil R. Shah (Querist)
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04 September 2012 In 1st year Client is having
Outward sevices - Rs.538650/-
Inward Services - Rs.445500/-
(In all above figure service tax has been charged and cenvat has been taken)

Now he want to avail basic exemption limit

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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04 September 2012 Now Tell me Is There Any CENVAT Credit Balance Lying of Last Year in Current Asset as Opening,
If No, Then Eligible for SSI

Monil R. Shah

Monil R. Shah (Querist)
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04 September 2012 No. Thank you for support...

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