Flexible Service Tax Exemption settings

by ADDA.io

Namaste Treasurers,

Wish you a Happy New Year.

We have an important release in Automated Billing. As per 2012 Budget, Rs.5,000 is to be given as exemption to the Maintenance Amount and for the remaining amount Service Tax will get calculated. The Automated Billing in your ADDA was already configured with this and your Monthly / Quarterly bills got generated without any hitch.

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But there are 2 problems

1. When Commercial Units (Shops) are present in the same complex, the exemption of Rs.5,000 is not given, and Service Tax should apply on the full amount.

2. In many cases, when an owner owns multiple flats in the same Apartment Complex, only the 1st Flat is given the Rs.5,000 exemption. 2nd Flat onwards he cannot avail of the exemption.

3. In some cases Auditors advise for no exemption at all. Service Tax to be collected in full for all flats.

We now give you a solution to all the above scenarios.

When you go to Income Tracker > Setup > Autoinvoice and you can now allow or remove Rs.5,000 exemption for the entire Category.

1. For Commercial Category, leave the Checkbox Unchecked. This will ensure Rs.5,000 exemption does not get applied.

2. For Owners with multiple flats please follow the below steps.

a. In Income Tracker > Track Flats > Category, Create “Multiple Flats” as a category. You may choose any other name as well.

b. Assign the relevant Flats to this new category. E.g., if an Owner owns Flat 1, 2, 3, and exemption is to be given to Flat 1 only, then assign Flat2, Flat3 to the category “Multiple Flats”

c. In Auto Invoicing Rules, for this “Multiple Flats” category, remove the Rs.5,000 exemption.

3. If your Auditor has advised no Exemption whatsover, then too leave the Checkbox Unchecked. This will ensure Rs.5,000 exemption does not get applied. .


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