10 lac exemption for 2 services
This query is : Resolved
28 January 2013
individual assessee provides 2 services :- rental of immovabble & brokerage in cloth business.
service tax on rental income was collected in bill and hence, paid off via challan to department.
for brokerage, no service tax is collected.
total of both is only rs.8 lakhs a year (this is 1st year).
My querry :-
this rule that once payment is made of service tax, option to claim exemption of 10 lac in a year is no more applicable.
So now,can he claim 10 lac exemption?
my view- he had paid only as he had collected, he still can claim 10 lac exemptin.
any views,
regards, ca kunjan , kunjan@nsc.in www.nsc.in
service tax on rental income was collected in bill and hence, paid off via challan to department.
for brokerage, no service tax is collected.
total of both is only rs.8 lakhs a year (this is 1st year).
My querry :-
this rule that once payment is made of service tax, option to claim exemption of 10 lac in a year is no more applicable.
So now,can he claim 10 lac exemption?
my view- he had paid only as he had collected, he still can claim 10 lac exemptin.
any views,
regards, ca kunjan , kunjan@nsc.in www.nsc.in
28 January 2013
either an assesse can claim exemption or he can recieve and pay tax... you can have both bowling and batting
28 January 2013
sir,
if he collects he has to pay. He hasnt chosen to pay option as he has no cenvat input anyways.
In short, just because he having paid in challan out of honesty only because he had collected, is he disqualified from 10 L exemption ?
if he collects he has to pay. He hasnt chosen to pay option as he has no cenvat input anyways.
In short, just because he having paid in challan out of honesty only because he had collected, is he disqualified from 10 L exemption ?
28 January 2013
he can claim exemption
28 January 2013
sir,i am reconfirming because you said above
"either asseesee can claim exemption or he can receive n pay tax".
and now you say he can claim exemption.
I again ask sir,
assessee has paid tax on one service as he had collected. Now can he claim 10 lac exemption for other service?
"either asseesee can claim exemption or he can receive n pay tax".
and now you say he can claim exemption.
I again ask sir,
assessee has paid tax on one service as he had collected. Now can he claim 10 lac exemption for other service?
28 January 2013
the assesse can claim exeption of 10 lacs., but as he has collected the service tax., it is irrelevant whether he avails exemption or not., as he has collected he has to pay the collected amount
28 January 2013
sir, i know if he collects, he has to pay. I again repeat, he has already paid this tax.
i am trying to claim exeemption for 2nd service of his ( brokerga on cloth business; his 1st service of rent he has already paid tax as he had collected).
my question remains -
"wont the 2nd service also have to pay tax because of this rule :-
once if assessee pays, he cannot claim 10 lac exemption."
i am trying to claim exeemption for 2nd service of his ( brokerga on cloth business; his 1st service of rent he has already paid tax as he had collected).
my question remains -
"wont the 2nd service also have to pay tax because of this rule :-
once if assessee pays, he cannot claim 10 lac exemption."
28 January 2013
No such principle is present...
Message likes :
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28 January 2013
sir,this principle is an option to be exercised once a year in notification 33 of 2012."
anyways, as exemption can still be claimed, its great.
thank you,
anyways, as exemption can still be claimed, its great.
thank you,
28 January 2013
if he wants to claim exemption, why he is charging tax.. if he didn't charged any amount in bill, than is there someone who is paying more amount than charged
28 January 2013
umm. why he has charged on rent income in 1st place is probably out of ignorance.
the fact is he has collected n paid off to government
now that he has already charged on rent income, can he still claim exemption for other service of brokerage?
i have replied to client, matter is debatable but prima facie, u can claim exemption. :)
the fact is he has collected n paid off to government
now that he has already charged on rent income, can he still claim exemption for other service of brokerage?
i have replied to client, matter is debatable but prima facie, u can claim exemption. :)
28 January 2013
that is the point.. it is clearly written in the statue that exercising the SSP exemption is ir-reversible once exercised one can not revert it... you know your answer ( don't know mr. bhargava's logic, hence can't comment)
Message likes :
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29 January 2013
friends the exemption of SSP is that., the turnover is not exceeding 10 lacs in the previous year., if any year ., the turnover exceeda 10 lacs., then for next year., the service provider has to collect from first rupee., and if for that year., if the turnover is less than 10 lacs., then he can claim exemption for next year., it is not a irreversable case.,
29 January 2013
bit if the option exercised in one year than it can not be reversed
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