I have income from 2 ways. One from commercial rental which is 10.5 lacs per year and another from public job milling in my factory of foodgrains which is 4 lacs per year. Shall I have to pay service tax on both public milling of foodgrains and commercial rent or only on commercial rent? Threshold is decided on total revenue of the person or or on basis of different divisions of business?
2 Replies
Aarush
(Delhi)
(1566 Points)
Replied 02 July 2012
The exemption is available upto 10 lakhs when the previous year taxable services does not exceed 10 lakhs.
In this case clearly less and therefore available. When the same money is recived there cannot be any tax since it was exempted. Consequentl;y only the services provided and amounts recived upto 1.7.2011 + billing/ completion after that date would be totalled. If this does not exceed Rs. 10 Lakhs there is no liability. Advisable to register when you reach 9 lakhs and start billing the ST once the ST number is allotted.
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 02 July 2012
Mr. Ramesh threshold means the amount of total taxable turnover as per the last fiscal, and not turnover of any specific business. It appears that you are liable to pay Service Tax on the entire turnover as it exceeds 10 lac limit. If not paid have to be discharged with interest and penalties.
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
