Tax Limit Service

This query is : Resolved

CA. Varun Soni (Querist)
Follow

25 September 2007 In case a servive provider crosses the exemption limit provided to small scale providers for the first time. He has to pay tax only on that amount which exceeds Rs. 800000.But if in the next F.Y his gross receipts fall down the said exemption limit then what will be the taxability of the services provided by him.

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

25 September 2007 He will have to pay tax in the next fin year also. However he will get the exemption benefit(which is optional)in the year subsequent to the year in which the TO was below 8L.