Actually 1 of my client has taken new Service tax Regn no. & wants to issue rent bills for his property,so shud he issue bills after crossing the threshold limit of Rs.10 Lacs or shud he issue the bills of service tax before the limit reaches Rs.10 Lacs
Please Sir i need an urgent reply or just send me the link from where i can get to know the details.
11 March 2012
If it is first year of providing service, he need not issue bill for collection of Service Tax.But he can issue Bill for rent without mentioning Service Tax element. After crossing the exemption limit, he may or may not issue bill with Service Tax element but Service Tax has to be paid on the gross amount received considering the amount received is inclusive of Service Tax. So it is better to issue bill with Service Tax amount shown separately after crossing the exemption limit of Rs.10 Lakhs. Once exemption limit crosses, no exemption is available in the following financial year.
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