Ritesh (CA Final) (326 Points)
23 December 2008Dear All, Please help
For current F.Y, Central Govt. has exempted Taxable Service of aggregate value not exceeding 10 Lacs from the whole of service Tax .
Provided, the aggregate value of Taxable Services rendered during the preceding F.Y doesn't exceed Rs. 10 Lacs.
Now my query is as to "while computing Rs. 10 lacs limits for Preceding F.Y, what do we have to consider,whether amount of Service Tax billed or amount of Service Tax received during the Previous F.Y ? "
CA TARUN JAIN
(Chartered Accountant)
(59 Points)
Replied 24 December 2008
CONSIDER FIRST 10 LACS RECEIVED RELATING TO TAXABLE SERVICES PROVIDED BUT IN THE CASE OF TRANSACTION BETWEEN ASSOCIATED CONCERNS ,CONSIDER BILLED AMOUNT IRRESPECTIVE OF RECEIPT AS PER AMENDMENT TO CURB TAX AVOIDENCE BY ASSOCIATED CONCERN.
CA. C V SURYAM
(Practising Chartered Accountant)
(865 Points)
Replied 24 December 2008
Mr.Ritesh & Tarun Jain,
Please read the notification no.8/2008-ST in conjunction with notification no.6/2005-ST. This reading will give clear picture about SSI exemption under service tax. These two notifications are attached herewith for your ready reference.
Chirayu Kothi
( Consultant Excise and Service Tax)
(248 Points)
Replied 24 December 2008
Chirayu Kothi
Consultant Cen.Excise & Service Tax.
The SSI exemption is based on turnover ( Billing amout of your organisation) the Basic is when the organisation raised the bill for 10 lakh means the recovery will be equal to 10 lakh in future.
The payment of service tax is on receipt basis but registration or net of service tax will be on turnover basis.
Have to file a declaration as on achieved the turnover of 9 lakh with dept.
CA CHINTAN AJMERA
(Chartered Accountant)
(2987 Points)
Replied 24 December 2008
Please read the notification no.8/2008-ST in conjunction with notification no.6/2005-ST.
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