Exemption limit availability

[Chalapathy Rao Marthy]

Dear Sir, My client is getting annual rental income of Rs 9.30 Lakhs from commercial establishments. My query is from when the exemption limit of Rs 10 lakhs comes into effect.

AI Summary

Service tax exemption limit raised to Rs 10 lakhs from April 1, 2008, for small service providers. A user inquired about the exemption limit for service tax concerning their client, who earns an annual rental income of Rs 9.30 lakhs from commercial properties. The response clarified that for the fiscal year 2007-08, the client would be liable for service tax since the income exceeds the Rs 8 lakh threshold. However, starting from April 1, 2008, the exemption limit increased to Rs 10 lakhs, allowing the client to qualify for the small service provider exemption for the fiscal year 2008-09.