CA.Anupriya Agarwal (Practising CA) (110 Points)
30 January 2013In 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?
Dinesh CA CMA
(CA CMA )
(130 Points)
Replied 30 January 2013
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.
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 30 January 2013
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)
CA.Anupriya Agarwal
(Practising CA)
(110 Points)
Replied 30 January 2013
What is the Turnover in the FY 2012 -13 = 8 lakhs or 11 lakhs?
CA.Anupriya Agarwal
(Practising CA)
(110 Points)
Replied 30 January 2013
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.
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 30 January 2013
Was the service provided in period ---Apr-jun'12 was specifically covered under any other exemption?
CA.Anupriya Agarwal
(Practising CA)
(110 Points)
Replied 30 January 2013
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?
CA.Anupriya Agarwal
(Practising CA)
(110 Points)
Replied 30 January 2013
No, not covered in any exemption... it wasnt taxable only..
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 30 January 2013
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.
CA.Anupriya Agarwal
(Practising CA)
(110 Points)
Replied 30 January 2013
what is the taxable turnover for 12-13 8 lakhs or 11 lakhs?
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 30 January 2013
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)
CA Bhunesh Aggarawal
(Dp Manager)
(25 Points)
Replied 30 January 2013
Mr sumit is right ....... taxable turnover will 8 lac ........ it will b couned when it is made taxable
CA.Anupriya Agarwal
(Practising CA)
(110 Points)
Replied 30 January 2013
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 ?
CA BARKHA MITTAL
(B.COM, CA)
(149 Points)
Replied 30 January 2013
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 30 January 2013
Refer Notification no.33/2012....which clearly states the value of taxable services....
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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