Exemption limit - Two services under same business

[Satish Goyal]

In case of renting service, initial limit of Rs. 8.00 is available. What would happen if the assessee is providing another taxable service under his business totalling to Rs. 8.00 lacs plus.

[Madhukar N Hiregange]

If in the previous year his taxable servcies had not exceeded 8 lakhs ( not considering rent) Then he would be admissible for the frist 8 lakhs of receipts of taxable sercvies. On the balance he would have to pay.

[Guest]

As per the notification 6/2005 dated 01.03.2005 and subsequently amended, the clause (vii) of ( 2) states as follows. " exemption under this notifcation shall apply to the aggregate value of all such services and from all such premises and not seperately for each premises or each services ". Therefore even if one service exceeds R. 8.00 lakhs, then service tax has to be paid right from one rupee for the another service. I hope this is correct, the viewers may submit their views.

AI Summary

Exemption aggregation rule: combine receipts across services so the exemption may be lost when aggregated taxable receipts exceed the threshold. The notification treats the exemption as applying to the aggregate value of all such services from all premises rather than separately by service or premises; therefore receipts from different taxable services must be combined to determine entitlement to the exemption and whether service tax liability arises.