Service Tax Exemption

Question;- suppose i am a retainer and i am providing my services to a company from the FY 07-08, in the FY 07-08  i was liable to pay service tax to the govt. as my retainership fee was exceeding the taxable limit. In the FY 08-09 , i just provide my services only for a month i.e. April 08 and my retainership does not exceed taxable limit i.e. 10 lakhs and i have surrendered my certificate to the Govt in the month of July 08 .
My question is that whether i am liable to pay service tax on the retainer ship received for the month of April 08 in the FY 08-09.
Is it valid ground for not to pay service tax that my retainership fee does not exceed Rs.10Lakhs ?
 

If you have charged Service Tax in your bill for the month of April 2008 and realised the same by June 2008 accordingly, the Service tax due as on 30th June 2008 and same is to be paid by 5th July 2008 in case of it is propreitorship firm or partnership firm.

Thanks,

S. Banerjee
 
 

Tell me one thing : if last year my consultancy fees was Rs. 100000 only and i had paid service tax on that. but in current year my receipts is Rs. 12 lakh. Can i get the exemption upto Rs. 10 lakh in current year.(i am not charging any service tax in bills). and what about the input credit.

If you have charged service tax, then irrespective of your liability to pay, you are required to pay.
Otherwise also you are required to pay. A small service provider is the person whose value of services in preceding year is less than exemption limit. In your case, your services value has been more than the exemption limit in the preseding year, hence you are liable to pay the service tax without any exemption.

in preceding year my receipts was less than rs. 10 lakh , then why i will not get the SSP exemption from Rs. 12 Lakh

You are required to pay ST on 12 Lakhs.
However since you have not charged the ST of 12.36% = 1,48,320/- to your clients the amount you recived is includive of ST.
Therefore liability wouldbe 12/1.1236 x 12.36% = Rs.1,32,005/-