Service Tax

[Mridul Sethi]

At which rate service tax for the m/o March-12 will be charged.10% or 12%.

 

[YAGAY and SUN]

It will be charged @ 10% for the month of March 2012 as per POTR.

[manoj lalwani]

For the month of March 2012 the rate of service tax is 10% .Service tax @ 12% is effective from 1st April 2012

[NEERAJ KUMAR, RANCHI]

For the month of March'12, s.tax is applicable @10 % only, 12 % will be applicable only after finance bill is passed in parliament and assent is given by the president. After this date will be notified making effective rate @ 12 %.

[rajkumar shukla]

it would be 12% from 1st April as this increase is by way of withdrawl of notification which had reduced service Tax from 12% to 10%.This withdrawl is effective from 1st April. this is not the case of simple increase in rate of service Tax.

[NEERAJ KUMAR, RANCHI]

Yes, the increased rate is effective w.e.f  01.04.2012. I agree with Mr Shukla.

[SUNIL & KALPANA SINGH TOMAR]

Received the rent (IMM> PROPERTY) of Rs.750000/- in f.yr 2010-11  exempted  no tax 

and recd rent of Rs 1357500/- in f.yr 2011-12  service tax on Rs557500/- @10.3% + Intrest 13%

We want the registration in service tax in self HUF a/c so pls guide us what exemption on us in huf a/c or in future

Can we  pay the service tax  after less the exemption or charge from Rs.1/-

Pls guide us .

 

Thanks

[rajkumar shukla]

it appears to be more of query than a reply. pl post in colmn meant for it so that others could see it

[SUNIL & KALPANA SINGH TOMAR]

Dear Sir,

One of my relative (mr.akhil singh tomar HUF a/c) receiving the commercial rent as per following manner:

Year                                                              Total Retal Income

2010-11  ------------------------------------         Rs.7,50,000=00   (NO S.TAX LIBILITY IMPOSED under exemption 8 LAC)

2011-12 --------------------------------------      Rs.13,57,500=00   ( Service Tax @10.3% Due of  Rs.557000/- after exeption Deduction)                                                                                                                                                          

2012-2013 -----------------------------------     Rs.24,00,000=00  (Service Tax @12.36% Due from April2012)

We request you  kindly direct us  on the following issues

* Can  we avail the exemption of Rs.8/-lac for the year 2011-12  or  What value should be considered for the valuation of  Service Tax  for the year 2011-12 ?

*How much Service Tax should be paid for the year 2012-13, when we are receiving the rent  Rs.200000/- Per month (In same A/C Akhil Singh Tomar HUF A/C)?

*Are we required to deduct the value of Rs.800000/- from the total rental value for depositing the service tax?

We would we very obliged for your response in this regard.

Thanks

Kalpana Singh                           

 

[SUNIL & KALPANA SINGH TOMAR]

Dear Sir,

We are waiting your response in this regard.

kalpana

[suresh mandadapu]

Dear Madam,

Service tax is applicable when gross receipts exceed Rs.10,00,000 in a year.

1. In 2010-11, there was no service tax liabiity since your gross receipts were less than Rs.10,00,000

2. In 2011-12, you have to pay service tax on Rs.3,57,500 (13,57,500-10,00,000) @ 10.3%

3. In 2012-13, you have to pay service tax on entire gross receipts of Rs.24,00,000 @ 12.36%. You can not deduct Rs.10,00,000 (exemption limit)

Awaiting others' response

 

Regards

M. Suresh

[NEERAJ KUMAR, RANCHI]

Yes Mr Sureh is absolutely correct, exemption limit during 2010-11 and 2011-12 was 10 laksh and not 8 lakh. once crossed the exemption limit you have to pay s tax on the entire amount.

[SUNIL & KALPANA SINGH TOMAR]

Dear M. Sureshji

Thanks  for reply .  I got my query answered.

Thanx a ton.

Kalpana

 

AI Summary

Service tax rate change: prior rate applies to March, higher rate effective from April; exemption threshold affects rental tax liability.
For March 2012 the pre-existing service tax rate applied; a higher rate became effective from 1 April 2012 following enactment and notification. The forum also addressed the exemption threshold for rental receipts, identifying the limit as ten lakh and recording two positions: one view that tax applies only to the excess over the threshold for 2011-12, and another that once the threshold is crossed the entire gross receipts are taxable.