Exemption of rs 9,00,000.00

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2012 DEAR EXPERT,
PLZ CLEAR MY CONFUSION , WHEATHER EXEMPTION OF SERVICE TAX UPTO RS. 9 LACS IS AVAILABLE EVERY FINANCIAL YEAR ?
FOR e.g. IN FIRST YEAR AMOUNT REEIVED IS RS.12 LACS SO,HENCE TAXABILE THEN IN SECOND YEAR AMOUNT RECEIVED IS RS 5 LACS , WHEARTHER IN IInd YEAR IT IS EXEMPT FROM TAX OR NOT ....

Ravikant

Ravikant (Expert)
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21 January 2012 1000000 Exemption is only for First Taxable Turnover 1 yr,

900000 Turnover limit is for Registration

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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22 January 2012 Exemption is available if your total amount of receipts in precededing financial year doesn't exceed Rs. 10 lac.

In Your case In first year You have amount received of Rs. 12 lacs, You will have to pay service tax on Rs. 2 Lac.

In next F.Y. since your turnover in previous F.Y. was more than 10 lac, You will have to pay service tax on Rs. 5 Lac.

Further, in next F.Y. you will get the benefit of exemption of Rs. 10 lac for first gross receipts because your amount received in previous F.Y. was less than 10 lacs( only 5 Lacs )

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Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2012 DEAR EXPERT,
ABOVE REPLY MAY HAVE CONFLICT TO EACH OTHER PLZ CLEAR AGAIN

THANKS