TaxTMI 
TaxTMI 
threshold exemption in case of abatement
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....hreshold exemption in case of abatement<br> Query (Issue) Started By: - AMARISH TIWARI Dated:- 2-1-2012 Last Reply Date:- 5-1-2012 Service Tax<br>Got 5 Replies<br>Service Tax<br>Dear Sir, My client is a transporter , he can claim abatement of 75%, He has just taken service tax registration, number, how should i caculate threshold limit of Rs.10 Lac? He will come in tax after turnover of 10 lac o....
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....r after turnover of 40 Lac( because he will claim 75% abatement that will come to 30 Lacs, then he will claim threshold exemption Rs. 10 Lacs.as per my point of view) thanking you CA>Amarish Tiwari Reply By raj kumar shukla: The Reply: As per explanation (B) in the Nofn.1/2006 "Aggregate value not exceeding ten lakh rupees' means the sum total of first consecutive payments received during a fi....
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....nancial year towards a gross amount, as prescribed under section 67 of the Finance Act charged by the service provider towards taxable services till the aggregate amount of such payments is equal to ten lakhs.Thus it implies that for computing 10 lakhs, payments received are to be counted and not the amount after abatement. Reply By ANAND SHEMBEKAR: The Reply: while calculating the limit of Rs.....
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....10 Lakhs , the value of taxable services on which service receiver has to pay the service tax not to taken into consideration. In instance case your client is service provider and provides taxable services of Rs. 17 Lakhs during the F Y but out of which taxable value of service (GTA ) to the Specified category of service receiver say Ltd Company or excisable dealer is Rs.12 Lakhs and others Rs. 5 ....
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....Lakhs then also he is able to claim the Small service provider exemption of Rs.10 Lakhs . While calculating the limit of Rs. 10 Lakhs , value before abatement to be considered and not after. Thanks ANAND SHEMBEKAR CELL NO. 91-9421187122 Reply By NEERAJ KUMAR, RANCHI: The Reply: Yes I do agree with the views presented above. Your client will come in tax only after turnover of Rs. 10Lac and no....
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....t after 40 Lacs. Reply By AMARISH TIWARI: The Reply: Dear Mr.Raj kumar shukla,ANAND SHEMBEKAR & NEERAJ KUMAR, RANCHI, I am very grateful to you for reply of my query on service tax threshold exemption CA.AMARISH TIWARI 9827073629 BHOPAL Reply By raj kumar shukla: The Reply: welcome mr. Tiwari.I have checked up and found that I have mentioned wrong notfn. no.In fact It is 6/2005 and 1/2006.....
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.... To that extent, I would like to correct myself. Raj kumar shukla<br> Discussion Forum - Knowledge Sharing ....