Service tax exemption

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Jiwan singh (Querist)
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31 December 2008 Dear all
Please explain

2007-08 SERVICE ASSESSABLE VALUE (Billed amt) = 1000000
2008-09 SERVICE ASSESSABLE VALUE (Billed amt) = 1200000

HOW TO CALCULATE SERVICE TAX IN 2007-08 & 2008-09 IF EXEMPTION LIMIT IN 2007-08 = 800000 IN 2008-09 = 1000000

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 December 2008 Assessable value,in your question, means amount received.
But exemption limit is determined on the basis of amount billed.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 December 2008 I correct my answer as follows:-
2007-08-Invoice amount in excess of threshold limit is Rs.200000/- You have to calculate tax on the amount received against that Rs.200000/-
2008-09-Cannot enjoy threshold limit.Amount received against that Rs1200000/-is fully taxable.
Mistake in my earlier answer is regretted.

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