In FY 2011-12 , Turnover of a Non Taxable Service is Rs. 8.5 Lakhs
In FY 2012-13, Turnover of the same from Apr'12 to June'12 is Rs. 3 Lakhs
From July'12 to Dec ' 12 , the service is now taxable & the Turnover is Rs. 8 Lakhs.
Question is : Whether Exemption of Rs. 10 Lakhs available? ,
Calculation of Basic Exemption of Rs. 10 Lakhs will be calculated from which period.? Apr'12 to Mar '13 or July'12 to Mar'13?
what will be the Taxable turnover / Service of the Company , 8 lakhs or 11 lakhs?
Service tax is payable in C.Y only when taxable T.O exceeds 10lakhs in the P.Y. Service tax is not payable upto the first consecutive payments not exceeding Rs.10 lakhs in the C.Y when taxable T.O is less than 10 lakhs in P.Y. Taxable T.O is 8 lakhs. Period shall be Apr 12 to Mar 13.
Yes, 10 Lacs exemption shall be available for the FY 2012-13.
Hence net taxable turnover for current year so far shall be---- Nil (I.e. 8Lacs- 10Lacs)
What is the Turnover in the FY 2012 -13 = 8 lakhs or 11 lakhs?
Will we ignore the turnover of Rs. 3 Lakhs earned in Apr'12 to June'12 while calculating Taxable service??
Because if we take Rs. 3 Lakhs then the total is 11 lakhs and we have to pay tax on Rs. 1 lakhs.
Was the service provided in period ---Apr-jun'12 was specifically covered under any other exemption?
yes, the service was provided between apr to june.
it was not taxable in PY and was taxable w.e.f. 01/07/2012.
will he get proportionate exemption from july'12 - dec'12 of Rs. 10 lakhs? or whole amt of 10lakhs?
No, not covered in any exemption... it wasnt taxable only..
Whole amount of exemption of Rs. 10 Lacs shall be allowed, but it shall be noted till the ST exemption is taken, then no CENVAT should be availed during that period(Further, refer Notification No. 33/2012)----it states the value of taxable services during Financial Year. hence, entire amoutn of Rs. 10Lacs shall be entitled for exemption, without any proportionate method.
what is the taxable turnover for 12-13 8 lakhs or 11 lakhs?
taxable turnover is 8 Lakhs, since you mentioned that Service has become taxable for the first time after July'12(which means that earlier, it was non-taxable despite of the thresh hold limit of rs. 10 Lacs)
Mr sumit is right ....... taxable turnover will 8 lac ........ it will b couned when it is made taxable
Mr. Sumit,
My view point is the same for proportionate method and for the turnover, but I would like to know that this conclusion is based on which circular / notice / section ?
Refer Notification no.33/2012....which clearly states the value of taxable services....
Chirag N Shah & Associates
Mumbai
CA Inter
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