Service tax 'recovery from client query

Income: Commission

Head: Business Auxilary Services

This is the assessees first year of such income. Hence, he is exempt upto 10 lacs of income. Now, the question is whether he should recover the 10.3% service tax for all bills for this year or only for the bills which are prepared after the 10 lacs of income limit is exhausted?


Also wanted to confirm that rate of service tax on Commission income is 10.3%..

Replies (4)

Only for Bills after 10 Lacs Exhausted

Rate -10.3% only

Rate is 10.3%. Being first year, tax is payable only for the value received in excess of Rs.10L.

A small Clarification

A few are in wrong notion that this 10 lacs exemption only applies to first year of commencement of business once the firm exceeds 10 lacs turnover they should collect ST for all the coming years

 

But the exemption of 10 lacs should be decided for Each year, depending on the turnover you made in previous year.

Means if your turnover not exeeded 10 lacs in the previous year, you can claim this 10 lacs exemption in current year too

 

Hope you know this rule

Yeah Prakash, already know that fact! Thanks again!

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