Availability of exemption limit

[sunil jain]

If monthly rent of commercial property is Rs. 1,10,000/-wef july,07 but I do not get rent for for feb & mar,08. thereby total rent recd is Rs.7,70,000/-only till March,08 althogh bills raised upto march,08 would be for Rs.990000/ crossing 8 lac exemtion limit. Query 1) As total receipt is less than 8 lac for 07-08, I need not pay any service tax for 07-08. 2)and again for 08-09, would I be entitled for first 8 lac exemption as aggregate value of taxable service was below 8 lac in pr.year(because as per notification dt 1-3-05, aggaregate value means the sum total of first cosecutive payments received.) Is this view correct.

AI Summary

Service Tax Exemption Confirmed for Commercial Rent Below Rs. 8 Lakh in 2007-08; Applies Again in 2008-09 A user inquires about service tax obligations for commercial property rent, which totaled Rs. 7,70,000 in the financial year 2007-08, despite invoices amounting to Rs. 9,90,000. They question if they are exempt from paying service tax since the actual receipts were below the Rs. 8 lakh exemption limit. The response confirms that no service tax is due for 2007-08, and the exemption applies again for 2008-09 until receipts exceed Rs. 8 lakhs, assuming no tax is charged to customers and no CENVAT credit is claimed.