Exemption availability on particular category or cumulative turnover

[Asked by Guest]

Dear Sir, I had a query regarding Service Tax on Immovable Property , As per Finance Act 2007 Service Tax has been Imposed on Service for renting of Immoveable Property w.e.f. 1st June 2007 : Our Company has rented our premises(Built up Area 2066 sq ft) to other Company @Rs 40 per sq ft Monthly Billing : Rs 82640 Billing from June 07 to March 08 : Rs 8,26,400/- Please advise on following : 1) Presently Our Company is registered with Service Tax under category as " Scientific and Technical Service¡" , Whether the Limit of 8,00,000/- turnover is relating to each particular service or cumulative turnover of all category of service provided by our Company. 2) Whether company will be required to charge service Tax on this transaction? 3) If Yes ? Whether Service Tax is to be charged after turnover of "Service on Immovable property¡" crosses 8 lacs or right from June 07. Thanks and Regards Prashant Bhole Thanks and Regards

AI Summary

Exemption limit for service tax applies cumulatively across services, making rent of immovable property taxable from its effective date.
The service tax exemption threshold is applied cumulatively to all taxable services in a financial year. Renting of immovable property is taxable when used for business/commerce and became chargeable from 1 June 2007; receipts before that date are excluded from the threshold calculation. Service tax must be charged once cumulative taxable receipts exceed the exemption limit, recipients may claim CENVAT credit, and if tax was not collected earlier it must be accounted for in the month the threshold is crossed.