ABATEMENT Vs EXEMPTION, Service Tax

[Abhisek Tibrewal]

On availing abatement under notification no.- 34/2011-S.T. ; can the threshold exemption limit of Rs. 10 Lakhs be claimed, being the first year of operation of the hotel (accomodation service provider) ?

Posts / Replies

[Deepak Nagori]

Dear Abhishek,

Yes the exemption limit of Rs. 10 lacs can be availed and service tax shall be payable for billings in excess of Rs. 10 lacs for the first year. From next year, though, you would have to charge service tax right from the beginning.

Regards

CA Deepak Nagori

[R.S. Mangal]

The Exemption will be on first 10 lacs being gross amount without any abatement which may be noted.