We have a confiussion about Examption Limit of 10 Lac.
In the Year 2009-2010 we received the Rent 1250000.00 we availed the examption and pay tax on 250000.00 in the year 10-11 the we paid service tax on 1st qtr after that the honarable HC made stay on Rent hence we cannot charged service tax from party not pay. Meanwhile our one property was letout and rent was reduced and goes below 10 lac again.
Now the question is whether we charges the Service tax or not because our tornover is below 10 LAC in current F Y.
Please give the advice as soon as possible so that we can made the payment of taxes if we need to pay.
01 October 2011
As per my opinion, service tax exemption is only for first year. It is not like income tax in which each year you can avail exemption. So, i think u have to pay ST on that.
12 October 2011
You have to look at the turnover of taxable services in previous year. If the turnover is less that 10 lakhs in previous year, in the present year you will avail exemption upto 10 lakhs.
CAclubindia
