Service Tax Liability

[Guest]

I am expecting this year my rental income from commercial property will cross ₹ 10 lac.

My liability starts from the date I cross the limit or from the date of agreement i.e fist april 15.

[Guest]

Service tax registration liability arise when limit exceed rs. 9 Lac and liability to pay tax arise when limit exceed rs. 10lac. So your liability will arise from the date limit exceed rs. 10 lac. You have to pay the tax on amount exceeding rs. 10 lac. eg. in 2015-16 amount of taxable service becomes 15 lac, then you have to pay the tax on 15-10=5 lacs

Regards

AI Summary

Service tax liability arises when taxable rental receipts exceed the prescribed threshold; tax payable on amounts exceeding that threshold. Registration is triggered by exceeding the lower prescribed threshold, while service tax payment obligation arises from the date taxable receipts exceed the higher prescribed threshold. Tax must be paid only on the amount by which aggregate taxable rental receipts exceed that higher threshold; amounts up to the threshold are not taxable.