CA Ashwani Agarwal (Practice) (3049 Points)
20 June 2011A compnay was in the business of HOTEL industry which has been made taxable in Service Tax from 1st of MAY, 2011.
The company had collection of 50 lakhs as room rent in the previous year.
My Question is whether the company has to pay service tax from 01/05/2011 only or should it wait for its receipts to cross 10 lakhs before starting payment of service tax as this is a new service.
Will the compnay be eligible for 10,00,000 exemption or not.?
Regards
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 21 June 2011
| Originally posted by : CA Ashwani Agarwal | ||
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A compnay was in the business of HOTEL industry which has been made taxable in Service Tax from 1st of MAY, 2011. The company had collection of 50 lakhs as room rent in the previous year. My Question is whether the company has to pay service tax from 01/05/2011 only or should it wait for its receipts to cross 10 lakhs before starting payment of service tax as this is a new service. Will the compnay be eligible for 10,00,000 exemption or not.? Regards |
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CA Ashwani Agarwal
(Practice)
(3049 Points)
Replied 21 June 2011
Dear Sir,
I am taking the points that u have highlighted as your answer...
Thanks
CAclubindia
