Registeration and Taxability

[VIGNESH]

Sir one of my client has registered under service tax in April 2015 and he has received rent from commercial property ₹ 20.00 Lakhs and he has started paying service tax after Crossing ₹ 10.00 Lakhs only on the assumption that, the first 10.00 lakhs is not liable for tax and he has not charged from the client too. is that correct? can u give any notifications for the same!

AI Summary

Service Tax Threshold Exemption: Tax on Rent Over 10 Lakh in First Year; Full Charge from Next Year. A client registered for service tax in April 2015 and received 20 lakh in rent from commercial property. They began paying service tax only after exceeding 10 lakh, assuming the first 10 lakh was exempt. Experts clarified that in the first registration year, the threshold exemption applies, meaning tax is due only on amounts over 10 lakh. From the following year, tax must be charged from the first invoice. A notification (No.33/12-ST) supports this, stating the exemption doesn't apply if the previous year's taxable services exceeded 10 lakh. Questions were raised about billing and claiming input service tax.