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 threshold: exemption applies until aggregate receipts exceed threshold, if no tax charged and no CENVAT credit.
Exemption applies until the aggregate value of payments received crosses the prescribed exemption threshold, provided the supplier has neither charged tax to the customer nor claimed CENVAT credit; actual receipts, not billed amounts, determine whether a financial year falls within the exemption and the exemption continues in the subsequent year until receipts exceed the threshold.