My query is, For Financial Year 2005-06 value of services rendered are Rs. 2.5 lacs, it means i am e

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My query is, For Financial Year 2005-06 value of services rendered are Rs. 2.5 lacs, it means i am eligible for basic exemption of Rs. 4 lacs for financial year 2006-07. now in 2006-07 i received Rs. 2.5 lacs commission from general insurance co. (liability to pay service tax is on insurance co. and Rs. 4.60 lacs brokerage as sub broker (NSE & BSE). now whether service tax is payable on Rs. .60 lacs.

AI Summary

Service Tax Payable on Rs. 0.60 Lacs as Sub-Broker; Insurance Company Covers Rs. 2.5 Lacs for 2006-07 Exemption. A user inquired about service tax obligations for the financial year 2006-07, given that they rendered services worth Rs. 2.5 lacs in 2005-06, which qualifies them for a basic exemption of Rs. 4 lacs in 2006-07. They received Rs. 2.5 lacs from a general insurance company and Rs. 4.60 lacs as a sub-broker, questioning if service tax is payable on Rs. 0.60 lacs. The response clarified that since the insurance company is liable for the Rs. 2.5 lacs, the user only needs to pay service tax on the Rs. 0.60 lacs.