Service tax exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2012 Hi,

I take coaching classes at a Institute and my pay is fixed at 1.5Lks per month net take home, i take payments under 2 headings, one half in my personal name and the other half in the name of the firm in which i am the managing partner, this way the total payments received under both the heads are 9Lks and hence i will be exempted of service tax,but my institute CA says that since my he is deducting Service tax to a tune of 2Lks from my annual package my total earning would actually be 10Lks under both the heads and i am liable to pay service tax, i wanted a clarification in this regards, since i am getting only 9Lks under each entity am i still liable to pay service tax for both entities?

Dayal

Dayal (Expert)
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19 June 2012 So long you get paid as salary, the subject income is ruled out of service tax.

For the income received as a partner if you have not formed a partnership firm, then you as an individual drawing income from profession will be subject to service tax.

According to my view you fall under the threshold limit of service tax and not payable by you.