Eligibility of exemption limit

[Guest]

Whether an assessee is eligible to claim exemption of Rs. 4.00 lacs every year as is in case of Income Tax for the exemption limit.

[Surender Gupta]

The exemption of Rs. 4 Lacs is available each but not like in Income tax. In service tax, the exemption is dependent on the turnover of the previous year. If the turnover of the previous year exceeds 4 Lacs, you are not eligible for avail in the current year.

AI Summary

Exemption limit in service tax depends on previous-year turnover and is unavailable if prior turnover exceeds threshold. The exemption of Rs. 4 Lacs in service tax is contingent on prior-year turnover: the exemption is available only if the previous year's turnover did not exceed the exemption threshold, and if the previous year's turnover exceeds that threshold the assessee is not eligible to claim the exemption in the current year.