TAX CLUB INDIA

am regd for service tax for renting of immovable properties on jan 2008
My Total Renting on immovable property for FY 2007-2008 was 9,50,000/- for full year , so i made collection and paid service tax when my rent was exceeded 8,00,000/-

This year i was anticipating total rental more than 10 lakhs but due to recession some tenants vacated and some premises was idle for a period and now also my total rental amount will be 9,50,000/-
i had collected service tax from few parties and few others are not paying
but iam remitting the service tax in full to the dept

the question is

1. whether i come under the exemption category this year fy 2008-2009
2. whether i come under the exemption category in fy 2009-2010.
3. if so can i send letters to my tenants to stop paying service tax.
4. since my total rental income will be around 9.5 lakhs should i surrender my ST regd number or simply file nil ST3
please advice

As per service tax act small service provided exemption is available if service rendered in the previous year is less than the exemption limit and subject to other condition which I assume does not apply to you.

This Limit has been enhanced by finance act 2008 and raised to 10 lakh from 8 lakh and applicable from year 2008-09.So to check whether exemption for the year 2008-09 we have to check the amount of taxable service rendered in FY 2007-08.And as per detail given by you ,the amount of service rendered in the year 2007-08 is 9.5 lakh i.e less than 10 lakh.so point wise answer to your question are.

1. whether i come under the exemption categery this year fy 2008-2009
In my opinion you come under exemption limit ,Hence no need to collect tax .

2. whether i come under the exemption category in fy 2009-2010.
You are also eligible to claim exemption for fy 2009-10 but amount received against taxable services provided exceeding 10lakh will be taxable in your hand,

3. if so can i send letters to my tenents to stop paying service tax.

This is doubt full step ,you have done .If you have already collected tax from your tenants,as you have said then as per service tax you are not interested in availing service tax exemption and once it has been established that you have collected the tax from the service receiver and deposited,it will be assumed that you are not interested in availing exemption.This option once exercised can not be revert back in the same year.so take action as the full fact of your case suggest to do.

4. since my total rental income will be around 9.5 lakhs should i surrender my ST regd number or simply file nil ST3.
As per Service tax rules 7(1) every assessee is required to file half yearly return.Further as per act "assessee" means a person liable to pay tax .person whose turnover is more than 9 lakh but less than 10 lakh is not liable to pay tax and not cover under the definition of "assessee" ,hence not liable to file return.

What does it mean that the gift tax is tax exclusive and the estate tax is tax inclusive? I'm studying my notecards about the taxes and I have that written down. Its next to impossible for me to try and find the sentence on that subject in my book as there are a lot of pages on these 2 taxes. What does it mean that the gift tax is tax excluve, while the estate tax is tax inclusive? Please be specific so I'll understand.