Basic exemption limit Rs.10.00 lalk applicable for all years

This query is : Resolved

Mathivanan (Querist)
Follow

26 March 2009 Is the Basic exemption limit of Rs.10.00 lakh applicable to all the forthcoming years after Registration of First Year ?

First year we have charged service tax.

In the subsequent year ,Whether we can wait
upto reach the Rs.10.00 lakh billing completed ? or
Is it mandatory to charge from the 1st billing ?

Please help to clarify the Query.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
Follow

26 March 2009 You can wait upto reach the billing of Rs.10 Lakh. Its mandatory once you reach this specified amount.

SANJAY VERMA

SANJAY VERMA (Expert)
Follow

26 March 2009 No, as you have to file your return half yearly.you have to charge service tax from the next year from the First bill.

Upgrade to CAclubindia Pro. Subscribe Now!

Mathivanan

Mathivanan (Querist)
Follow

27 March 2009 Thanks Mr.Lokesh and Mr.Sanjay for the clarification.

But one reply says we can wait upto Rs.10.00 lakh billing to reach for charging service tax in subsequent years.

Anothers reply says service tax is to be charged from the 1st billing in the next year.

Which one is correct to follow ?
some other members can clarify please.

C A GROUP COACHING

C A GROUP COACHING (Expert)
Follow

27 March 2009 Exwmption limit is to be waited only upto registration not there after.
Since registered you will charge Serv Tax from Ist Rupee in the subsequent year. But suppose you do not cross the floor Limit (exemption limit in that year)you can stop charging service tax in further subsequent year till you cross the exemption limit as prescribed in that year in consideration.

Chandrakant Ambani
Bombay
9819408963
9821240674

SANJAY VERMA

SANJAY VERMA (Expert)
Follow

27 March 2009 I agree with Chandrakant, Hope everything is clearified now.