Availability of exemption

[MANOJ JAIN]

A person having income from commissions,(which is taxable under BAS),of Rs. 725000.00 in FY 06-07.Threshold exemption being Rs. 400000.00) In next FY i.e. 07-08, he earns a commission of Rs. 890000.00 (Threshold Exemption limit being 800000.00) In the next FY i.e. 08-09, he earns commision of Rs. 1950000.00 (Threshold exemption limit being Rs. 1000000.00) Can anybody give suggestion, what amount would be net taxable in each year? Can we claim exemption of Rs. 400000.00, 800000.00 and Rs. 1000000.00 as exemption in each respective year. I presume, it is available for all three years on the contention as under: Rs. 400000 exemption is available for Ist year. Rs. 800000 exemption available for 2nd year because income for previous year was less than Rs.800000.00. Rs. 1000000.00 exemption available for 3rd year because income for previous year was less than Rs. 1000000.00. I am not sure about my contentions.Can anybody will help me out. Manoj Jain

AI Summary

Small service provider exemption: eligibility assessed annually based on previous year's turnover, influencing service-tax liability.
Eligibility for the Small Service Provider exemption is disputed: one view treats the exemption as a single aggregate threshold causing tax liability once crossed, while another view-based on the small provider exemption rules-states entitlement is assessed year by year and depends on whether the previous year's turnover falls below the prescribed threshold; if the previous year's turnover exceeds the threshold, exemption for the subsequent year is not available.