How to calculate Exemption

This query is : Resolved

Nirmal Jhanwar (Querist)
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18 February 2009 Dear

sales 01/04/05 to 31/03/06 is Rs. 490790/-
sales 16/06/05 to 31/03/06 is Rs. 387645/-
Service tax on tyre retreading apply from 16/06/2005.
sales 01/04/06 to 31/03/07 is Rs. 592070/-
Is the exemption of 4.00 Lacs available for the year 06-07 because T.O. of 04-05 is below 4.00 Lacs (T.O. calculate form applicability of service tax)
Please reply me. It's urgent please.
CA NIRMAL JHANWAR

Dayal

Dayal (Expert)
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19 February 2009 sales 01/04/05 to 31/03/06 is Rs. 490790/-

sales 16/06/05 to 31/03/06 is Rs. 387645/-

Service tax on tyre retreading apply from 16/06/2005.

Ans -----No liability during the above period

sales 01/04/06 to 31/03/07 is Rs. 592070/-

Ans-----Liability on Rs. 192070/-

Is the exemption of 4.00 Lacs available for the year 06-07 because T.O. of 04-05 is below

Ans-----Yes exemption shall be available since as the same cannot be considered for applying the limit since the service was not taxable service during that period.

4.00 Lacs (T.O. calculate from applicability of service tax)

Ans-----Yes computed from the applicability of service tax and not prior to that.