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Small service provider exemption : Detailed guide

Service tax providers has small relief via small service provider exemption. Last update for it is in  via notification no. 33/2012- ST dated 20/6/2012 ( small service provider exemption notification). Service providers whose value of taxable services does not exceed Rs. 10 lakhs in previous year can avail exemption scheme for small service provider.

Small service provider exemption history:

In notification no. 6/2005, dated 1/3/2005, the government has granted small service provider exemption when service turnover does not exceed Rs. 4 lakhs.

This limit has been increased with time passed. Recently it is Rs. 10 lakhs.

We can see through following table history of small service provider history.

[table id=18 /]

Small service provider meaning:

Small service provider means taxable value of service provided during the previous financial year does not exceed Rs. 10 lakhs.

 Small service provider exemption limit:

Small service provider can get exemption up to aggregate value of taxable services up to Rs. 10 lakhs. When turnover of taxable services exceeds Rs. 10 lakhs, service provider is required to charge and pay service tax.

We can understand if from below table.

[table id=19 /]

 

To whom, this service tax exemption is available?

This SSP exemption is available to all type of person. Person is not restricted to natural person.

‘Person’ definition under 65 B ,

  1. Individual
  2. HUF
  3. Company
  4. AOP
  5. BOI
  6. Firm
  7. Society
  8. LLP
  9. Government
  10. Local authority
  11. any artificial juridical person,not falling within any of the preceding sub clauses.

Conditions to avail service tax exemption for small service providers:

Turnover of previous year’s services should not exceed Rs. 10 Lakhs:

As per notification no. 33/2012 , condition mentioned in point 2 ( viii),

Small service provider exemption is available if

the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.

Meaning of aggregate value:

Explanation given in explanation-  point B of notification no. 33/2012,

(B) “aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of the said Finance Act under any other notification.”

So turnover should be calculated on the basis of invoice. Before notification no. 33/2012 dated  1/7/2012. The aggregate value is required to be calculated on receipt basis.

Do not consider exempt services’ value while calculating turnover to claim exemption to small service provider.

The small service provider exemption is optional:

The provider of taxable service has the option not to avail small service provider exemption and charge and pay service tax. Once this option is exercised it cannot withdraw during the remaining part of financial year.

Cenvat credit under rule 3 is not available during exemption period:

Service provider cannot avail cenvat credit for service tax paid on input services or cenvat credit for capital goods while claiming exemption for small service provider.

Additionally as per point 2(v) of notification st 33/2012,

(v) the provider of taxable service who starts availing exemption under this notification shall be required to pay an amount equivalent to the CENVAT credit taken by him, if any, in respect of such inputs lying in stock or in process on the date on which the provider of taxable service starts availing exemption under this notification;

Sometimes turnover of service provider goes down and he is able to avail small service provider exemption for the financial year. In that case, if he has taken any CENVAT credit for inputs lying in stock or in process on the date of availment of exemption, he is required to reverse that from CENVAT register. He can’t use that CENVAT credit.

Service provider can claim CENVAT credit on input and input services,when the service provider starts paying service tax and used for provision of taxable services for which service tax is payable.

In short, don’t claim CENVAT credit until you start paying service tax for taxable service provided.

Total of tunover of services provided from more than one premises:

If service provider is providing services from more than one premises, he is required to aggregate value of all those services to calculate exemption limit of Rs. 10 lakhs. Also consider all types of services you have provided from those premises. There is no separate limit for separate services.

Exemption not available:

Service provided under brand name of another person:

  1. Exemption for small service provider is not available when service provided by a person under brand name or trade name, whether registered or not, of another person.
  2. When service is provided by person under own brand name or trade name would be eligible for exemption for small service provider.
  3. Brand name definition as per notification ST- 33/2012 dated 20 june 2012.

“‘brand name” or “trade name” means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person 

Service tax is payable under reverse charge mechanism:

Reverse charge mechanism means service tax is not required to charge by service receiver in bill and pay to government but service tax should be paid by service recipient himself to government.

When service receiver is liable to pay service tax under reverse charge mechanism, he cannot avail small service provider exemption. To know who is required to pay service tax under reverse charge mechanism ( RCM), read our following post.

Reverse charge mechanism in service tax

So when you are liable to pay service tax under RCM, you are required to register yourself with service tax department and pay the tax. No matter tax amount is Rs. 100 or Rs. 1,00,000. This provision is really hardship for service receiver because sometime service provider is not liable to pay service tax due to lower turnover but service receiver is liable to pay service tax due to applicability of RCM.

Small service provider is blessing for service provider. You can also avail this scheme of exemption from service tax if your taxable turnover of previous year is less than Rs. 10 Lakhs. If you have any query about service tax exemption under notification ST – 33/2012 ( small service provider exemption), let me know through comments. If this article helps you in some manner, say thanks by sharing the article on social media by clicking buttons on left side.

Abatement and small service provider exemption limit:

Many readers have the question whether abated value should be considered for small service provider exemption. While considering aggregate value for small service provider exemption limit, consider value before abatement to calculate exemption.

Only value of services which is exempted from whole of the service tax should be deducted from taxable turnover.

Example:

Total turnover of business: 17,00,000

(a) Wholly exempted services: 2,00,000

(b) Services on which Abatement at 50% available : 10,00,000

(c) Services on which no abatement is available: 5,00,000

calculation of  taxable turnover for small service provider exemption:

0 (a) + 10,00,000 (b) + 5,00,000 = 15,00,000.

Based on notification no. 33/ 2012 of service tax.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

91 Comments

  1. By MITAL CHHEDA

    what if an individual is a receiver of transportation services and he is paying service tax on it and filling return for the same and if he starts providing renting services then can he avail 10 lakhs exemption if his annual income for providing services is less than 10lakhs or not

    • By admin

      If person is paying service tax on reverse charge mechanism, he cannot avail exemption for small service provider to avoid RCM. Means if you are required to pay Rs. 100 under RCM, you are required to register yourself with service tax department and pay service tax. However, he is not required to charge service tax for renting services provided in bill to others as his turnover is less than Rs. 10 lakh.

      • By sandeep

        mam should we consider abatement while considering threshhold exemption

      • By admin

        I have updated article for your question. Plz go through it.

      • By sandeep

        also, if assessee previously got registered under service tax and surrendered as his work has been completed. Again in next year he gets work which is expected to cross 9 lakhs. Should threshhold exemption be granted ??

      • By admin

        If turnover of previous year is less than 10 lakhs and turnover of current year does not exceed Rs. 10 Lakhs, he can take exemption for small service provider.

  2. By shekhar shinde

    rate of erection ,commissioning & installation service ?

  3. By Himanshu Mehra

    If a sevice provider is providing renting a cab services and want to charge service tax @ 40.Whether he will get registration after achieving turnover of rs 25 lacs or 10 lacs ?

    • By admin

      Turnover of Rs. 10 Lakhs.

  4. By Mital

    According to Noti. No. 33/2012 dated 20/06/2012 the government have granted 10 lakhs Exemption for every SSI units, If the turnover doesnot exeed 10 Lakhs in previous financial year.

    Now my query is for E.g. if the total turnover of a unit in 2008 was 8.50 lakhs that means in 2009 the unit will get Exemption of 10Lakhs , further if the unit in 2009 crossed the turnover limit say 12 Lakhs that means after 10 Lakhs the Taxable amount comes 2 Lakhs and suppose in 2010 the unit turnover is 5 lakhs so the unit have to pay Service tax on it.. now my query is as per above notification the Unit gets Exemption If the turnover doesnot exeed 10 Lakhs in previous financial year so for the year 2011 the previous year will be 2010, and the turnover of the unt in 2010 is 5 Lakhs… does the unit can avail the exemption benefit again under the above notification.

    • By admin

      Yes, It can definitely avail the SSI exemption for financial year 2011-12. ( Please note that We should consider financial year and not the calendar year to decide the exemption availability.)

  5. By mitesh

    What if we are service receiver of Security Service and we require to Pay service tax on such on the basis of reverse charge mechanism. but if Security are under Small service provider. whether we require to pay service tax on such bill?

    • By admin

      Yes, you are required to pay service tax under RCM if you are covered under reverse charge mechanism. No matter, service provider has not turnover of Rs. 10 lakhs and he is availing small service provider exemption.

  6. By Rupak

    Dear Madam, we are operating our placement agency with a brand name. We provide recruitment services where we provide suitable candidates and once they are selected they are on the payrolls of the company.
    1. Are we exempted under small service provider.
    2. If no, then we have to charge service tax @ 14% and submit it to govt.
    Please help us with your advise.

    Regards
    Rupak

    • By admin

      Your service is taxable.service tax rate is 14%.

      You can avail small service provider exemption for first 10 lakhs turnover. ( Read the post carefully)

      No reverse charge is applicable for placement service. So you need to charge the ST in bill and deposit to government.

  7. By Mukesh Sharma

    A person is providing manpower supply services to body corporate as well as to non body corporate.
    Body corporate is covered under RCM.
    From service provider point of view to calculate SSP exemption what shall be the meaning of turnover??
    Turnover to non body corporate or to both to find first Rs. 10 lacs.

    • By admin

      Turnover means wages/salary of labors/employees plus your profit.

  8. By tlecons

    Sorry if I am bringing up an old topic here. This is regarding small service provider exemption.

    I have started a financial consulting service in July’15 and as of now not sure whether I will cross threshold limit of 10 lacs by March’15 . Hence I am not charging service tax from clients till now. My understanding and pls. correct if I am wrong is as follows :

    1. If my total billing for this FY 2015-16 is below 10 lacs no service tax is payable.
    2. When my billing in this FY 2015-16 reaches 9 lacs, will have to register and charge and hence pay Service tax from the invoice which exceeds 10 lacs.
    3. So if my billing in FY 2015-16 is 12 lacs then only on 2 lacs is Service tax payable but in FY 2016-17 this 10 lacs exemption is not available even if I have only 1 lac billing
    4. In case my actual billing is below 10 lacs in this FY 2015-16 and in next FY 2016-17 it is 12 lacs I will still get 10 lacs exemption in FY 2016-17 and pay Service tax on 2 lacs but of course in 2017-18 Service tax is payable from first rupee

    Have I covered all scenarios or is there some gap still ?

    • By admin

      Absolutely correct.

  9. By Rohit

    A person is providing Exploring services for Mall, Its 1st Invoice is of 8,00,000 and Second invoice is of Rs. 7,00,000/-.. So I want to know that Service tax attracted on 7,00,000/-.. Please guide

    • By admin

      In Rs. 7,00,000, Rs. 2,00,000 is exempt for small service provider exemption. Other 5,00,000 is taxable. ( Assuming the both bill are in one financial year)

  10. By Rohit

    Thanks.
    So, how to Charge in Invoice that 2,00,000/- is exempt and 14% on Rs. 5,00,000/-.. Please clarify

  11. By Nikhil

    Service provider: manpower service provider without service tax registration.
    Receiver: Private company.
    Invoice used at the time of service to third party customers: ” Name of the company”.(“brand name” without service tax amount)
    In this case is it compulsory for the man power supply provider to get registered and collect tax from the company?
    Since the company is paying the total tax, does RCM applicability is correct?

    • By admin

      If service provider is availing small service provider exemption, no need to get registered under service tax department. COmpany is liable to pay service tax no matter service provider is registered or not under service tax.

  12. By Nikhil

    Madam, in the above case service providers are “new”, just made an agreement with the company. They are dealing in service of spare parts of the electronic goods of the company to third party customers. Definitely with in months they will cover 10L limitation. Since the company has service tax registration they are paying full amount of tax. Invoice raised by these dealers to the third party are in the name of company only. Value of spare part and service charge are separately shown in the invoice, but without the tax amount. Is it compulsory for the dealers to get registered? Does RCM works here?.

  13. By rohit

    Mam, I have a query.
    In case of tour operators service value is is 10% as per 26/2012.. His gross receipts is 90 lakh.. So whether he is required to take reg.

  14. By sumit mishra

    if service provider and receiver both are body corporate but service provider is availing small service provider exemption, then is the receiver liable for rcm?? as the law clearly states that is a body corporate is the service provider then rcm not applicable.. kindly put some light on the fact!!

    • By admin

      If service provider and service receiver both are corporate and no RCM is applicable here even when service provider is availing exemption for small service provider.

  15. Hello, Is the service tax also applicable on a freelancer individual who provides corporate training? Also, if a person is getting USD income from a firm based in the US, getting credited into Indian bank account, should it also be covered in the service tax bracket. And, for my clarity, if in the first year the income is 12 lakhs, the service tax needs to be paid only on 2 lakhs (12-10) and in the second year if the income is 8 lakhs, the service tax will be on the entire 8 lakhs.

    • By admin

      Yes, if service is provided in India, service tax will be applicable.

      You are right in service tax calculation in clarification.

  16. By KASHINATH GOVALKAR

    can i register in service tax without crossing limits

    • By admin

      Yes, voluntary registration is allowed.

  17. By priya mishra

    is there is any tax is levy of gold Jewelry

    • By admin

      Vat is levied on sale of jewellery.

  18. By B Ghosh

    I have taken the registration (ST2) in October last for participating in some tender and vendor registration. But my service tax billing will not touch or exceed 10 lacs in a year. Now should I require (mandatory) to charge service tax on the small billings I am rainsing on my other clients ? If it is, should seek any exemption in this regard, how to ? Or, can I temporarily surrender the registration and reclaim the same, whenever I feel that my billing would exceed 10 lacs.

    • By admin

      No need to charge service tax if your billing is less than 10 lakhs a year. You can claim ssi exemption.

  19. By Manikanta reddy

    We have built and marketed an “mobile app” for for free of cost. As customers are using that app, we are planning to take some charge for that on half year basis[similar to whatsapp]. will it comes under service charge? If yes, what type of service it is? is there any abatement rate for this type of service? how much tax rate we should pay as a service provider?

  20. By ANIL KUMAR

    Please confirm if under cab operator if service provider not registered under service tax as taking exemption of 10 lacs & service received is paying reverse charge.

    Then please confirm service provide can get exemption of 10 lac or not while cab operator service are under reverse charge.

  21. By Ashwin Shetye

    We are a renting vehicle Pvt Ltd firm, aggregators & do not vehicle any of the vehicles. Our annual income is not more than 10L, does the “small service provider” exemption can be availed or is it that we need to collect service tax from day1 irrespective of annual income?

    S.T is on total revenue or income only in above case?

  22. By Rajesh N

    Hello Madam, is service tax registration and service tax charging applicable in following scenario?
    If a person is working as a freelance software consultant from home in India for companies outside India.
    His total income (i.e. receipts) is going to be around 15 lac in a year.

    In this case, can’t he just show the income in income tax and pay only the income tax ?

    Local CA says the service tax exemption limit is 20 lacs, also service tax registration not required in this case.

    Please clear the doubts.

  23. By Bhagwan Gaikwad

    Hello Mam I am a manpower suppler i am provide worker in co operative society who was liable for service tax . not

  24. Hello Mam I am a manpower suppler i am provide worker in co operative sugar factory who was liable for service tax .

  25. By mukesh goyal

    my compnay is engaged in manufacturing of gold and silver artilces , our manufacturing goods sale and trading turnover is more than 1000 crores. Now my company is providing service to any one clients for Gold testing and analysis. In this case can we charge servcie tax on bill , however we are not registed as a service provider for Gold testing and analysis, Hence it is not our main business and not hope to earning more than Rs 2 Lacs in a year. What amount we will be deposited to Service tax and where shown such earnig , when we have not a registered as a service provider , hence we are a manufacturing compnay.

  26. By SACHIN

    does commercial rent fall under liability service tax if income from rental exceeds 10 lakhs, as it is owner receiving rent has to pay 30 percent tax for anything above 5 lakhs, though i am told, maintenance, repairs exemption is given to owner too, In this present budget has service tax exemption limit raised to 25 lakhs or not

  27. By Abishek

    Has the exemption limit been raised ??

  28. By NAGARAJAN.U

    Mam,

    Iam Doing Labour charges(Job Work) Business in this Financial year my Total Labour Charges Amount exceeds 10 Lakhs. Iam Liable to Collect Service Tax or Not ?

  29. Hello Ma’am,

    We are a technical service provider to DRDO labs in India. For deploying our resources (manpower) to Govt. labs, do we charge them 14.5% service tax or is there any other tax slab? I would really appreciate your input.

  30. By K Butchibabu

    I am doing the two types of business on is management services and another one service is commission from clients. I Received 500000 through management charges and 720000 from commission. Am i liable for registration or not

  31. By HELEN

    If any differential charges are claimed now from the service receivers due to retrospective revision of charges, for services rendered during the service tax exempted period, whether service tax liability is there please?

    • By admin

      If turnover exceeds Rs. 10 Lakhs after adding service tax on additional charges, service provider is liable for service tax and interest for that period. pay service tax and revise return.

      • Hello Mam I am a manpower suppler i am provide worker in co operative sugar factory who was liable for service tax .

  32. By sunny

    Our company is Pvt Ltd Co. and we have taken a car on lease @60000 p.m. from a tour operator who is an individual. We know that his gross receipt is more than Rs. 10 Lakh But he has not taken service tax registration. Now my question is :- should we suppose that he is an SSP and should not pay service tax under reverse charge machanism OR we should pay service tax on Rs.60000-60% abatement?

    • By admin

      Your company is liable to pay service tax under RCM. ( It is not important about registration of service provider). If he is not availing abatement, it means liability of your company under RCM is 50% of 14.5%.

      Refer service tax rate chart here – http://taxmasala.in/service-tax-rate-chart-for-fy-2015-16/

      • By Bhagwan Gaikwad

        If turnover exceeds Rs. 10 Lakhs after adding service tax on additional charges, service provider is liable for service tax and interest for that period. pay service tax and revise return.

  33. By Kartik S

    I am a air travel agent and package tour operator. my gross receipts from both services in past two year is around 25-30 lakh per annum. while calculating threshold limit of Rs 10 lakh do we need to consider Gross (ie. 25-30) or net as our gross margin is below 10L. please advice detail provision.
    Thanks in advance

  34. By Bharat N.Gajjar

    Hello Ma”am
    I am running a business of architectural firm my yearly turn over is not exceeding 10 lac’s but i am registered and have a service tax number how can i fill the NIl return

  35. By arun gupta

    I am a CA who is partner in CA firm. Annual turnover of firm is 25 Lacs. I open my own Proprietary firm at same address and provide auditing services in both Partnership and Prop. firm. In next year turnover of Prop. firm is 8 Lacs and Partnershipo firm is 17 Lacs.
    1. Can I claim SSI exemption in Prop. firm and not charge Service Tax on turnover of 8 Lacs.
    2. Can Service Tax deptt. club turnover of both firms as Associate Enterprises and charge Service Tax on combined turnover of Rs. 25 Lacs?
    Pl. advice

  36. By CA. Vinod Manik

    My Client is Labour Contractor providing services in Construction Business? The Control over manpower is supplied is with Contractor. Turnover exceeds 10 lacs in a year. Now my questions are:

    1. Under which services his firm (Partnership) will be registered?
    2. He is receiving advance payments from builders through out the year. Since the service is not completed he has so far not raised the bills but advance payment received more than 25 lacs by this march 16. When POT is applicable and how much Service tax is to be paid?
    3. He is also receiving payments for providing labour for construction of school building to an educational institution. Is these payments are tax free? if yes than by which clause?

  37. By Kunal Warier

    Hello, my name is kunal. I started my new adverting agency on 1 Oct 2015. As of date my total business is of Rs 1,20,000. So, do i need to pay service tax?

    • By admin

      No, your turnover is less than Rs. 10 Lakhs. Dont need to get registered. However, keep eyes on turnover in next year.

  38. By Kamlesh

    Dear Madam,

    Mine is a Partnership firm providing Civil contract services like Construction of Residential complexes and Works contract services with the Turnover of Rs 9,45,000 during the year 2014-15. Expecting my Turnover during 2015-16 exceeds the Basic exemption of 10 Lacs I had taken the Service tax Registration during the month of Sept 2015.

    But I had achieved a turnover close to 5 lacs.

    1. Shall I need to pay any Service tax in the current year ?
    2. If I need to pay Service tax, please let me know the abatement % for Works contract. As far as I know it is 60% abatement. Increase in Service tax rate from 12% to 14% effective from 1st June 2015 and 14.50% effective from 15th Nov 2015. Am I right ??
    3. Shall I need to file the Service tax return even if I fall below 10 lacs turnover ?
    4. If needs to be filed, is there any penalty for non-filing of the Service tax return. I had not filed the return for the first half year of 2015-16 till date.

    Please clarify

  39. By LAKHWINDER SINGH SACDEVA

    I AM INDIVIDUAL AND I HAVE FOUR FIRMS EVERY FIRM HAVE 6 LACS BILLING IN YEAR SERVICE TAX APPLICABLE OR NOT

  40. By kingshuk lahiri

    we are a pvt. ltd co. and and taking manpower services from individuals under 10 Lakhs. of turnover. pl. let me infrm whether is there any clause for the recipient to save ST under RCM?

    • By admin

      No, your company needs to pay service tax under RCM.

  41. Dear sir/ mam,
    A client is first time submitting service tax return, so he can avail exemption of notification no 33/2012. but he has raised service tax bill from the very start and raised service tax . now his turnover is 40 lakhs. Please advise me, is there any exemption under 33/2012 can be claimed under this situation?!?!?!?!? Please help me

  42. Hello my company providing services 8 lakh and matireal supply are 8 lakh so how much I give to service tax?

    • By admin

      Turnover is less than Rs. 10 lakhs so there is no service tax liability. Keep eyes on turnover. :)

  43. Hello, we are service provide below 9 lakh and we are material supply above 12 lakh total we are business 21 lakh so we are give service tax?

  44. By RAJNI

    Dear Tarunnum Khatri Mam,

    Pls. tell i am in little confused my client is agent of western union and he pays service tax on commission which he gets reimbursed besides this he is also providing other taxable services about 5 lakhs. Now pls. tell whether he can claim ssi exemption for 5 lakh or he has to pay full 14.50% on 5 lakh also because he is also earning commission.
    His total services are 6.50 lakhs.
    5 lakh +1.50 lakh commission.

    Thanks

    Regards:
    RAJNI

  45. By Prashanth

    Dear mam, I have done service tax registration. My yearly turn over is less than 4 lakhs only but I am charging 14.5% service tax to all my customers in the bill. Shall I need to pay service tax or not? Please guide me. Thanks…

    • By admin

      Once you have charged, it is compulsory to deposit service tax collected to department on due dates.

      • By spuneet1610

        I have a few questions.

        1) Are there exemptions available to foreign companies or small businesses? I believe there is a service tax exemption for service providers with turnover under Rs. 10 lakhs.

        2) Can we push service tax obligation to customers,through our customer agreements. In the event we are made to pay service tax in the future, I would like to be able to recover such costs from customers.

        3) Case:
        All personnel costs for supporting the customers are being incurred in a Pvt Co. in India. These costs are being billed to the US on a cost plus basis. Is service tax payable by thatPvt. Co. on intercompany invoices and if so, is there any opportunity for us to offset these service tax payments from service tax collected from customers?

        Please do answer these queries at the earliest….

  46. By TRIPURANAND SAHAY

    Dear Sir/Mam,
    I have some query regarding the service tax Rules, pl guide me at the earliest.:-

    1. That I retired from a Central Govt. Company MECON Limited , Ranchi in the year 2009 as an
    Assistant General Manager,Civil Engg. Division.

    2. That I started to work as a Retainership Basis with a private Company from Jan.2011 and Received a
    total amount of Rs 259355.00 in the F.Y.2011-12.

    3. That I continued to work in the same company in 2012-13 and total amount received from this
    company in 2012-13 is 1080000.00 and left job in Dec.2012.

    4. In March 2013,I worked as Retainership basis in another Pvt. company for only 15 days and received
    a total amount of Rs.66000.00

    5. Thus in F.Y.2012-13 , I received a total amount of Rs 1146000/- altogether.

    6. Then I applied for Service tax Registration no.on 10 th August 2013. and received the Service Tax
    Regn. no. on 20-08-13.
    7. After receiving the Registration no. , I paid the Arrear Service Tax of an amount of Rs 80000/-
    exceeding the limit of Rs 10 lakh and Rs 66000/- alongwith interests.

    NOW MY QUERY IS AS FOLLOWS :-

    1 Since this was my first year of my Retainership work and I paid the Service tax of the amount

    exceeding the limit of Rs 10 lakh is ok or not.

    2. What is the Service tax Rules says whether I would hv applied for Service tax just reaching my total
    amount the limit of Rs 9.0 lakh.

    3. While applying for S.T.Regn. no., nobody gave me that suggestion , nor the service tax department
    issues any letter regarding the delay in applying the S.T. Regn.

    4. Now the Superintendent of the S.T. Deptt. says that penalty has to be paid for the peiod from the limit
    of Rs 9 lakh crossed and the date of receiving the S.T. REGN. NO.

    5. Please suggest me at the earliest the rules of the Service tax.

    Thanking you !

    T.N.SAHAY
    Contact no. 09771411798

  47. Hello mam

    Is SSP exemption E/N 33/2012 is one time…that means if I claimed exemption for a year and lateron again if my preceding previous year turnover becomes lower than 10 lac, again I can claim the exemption in previous year.

    • By admin

      Yes, you can claim exemption if your turnover is below 10 lakh for another year. Exemption is available for next year.

      Example:

      First year turnover : 9 Lakh : exempt

      Second year turnover : 11 Lakh : 1 Lakh taxable

      Third year turnover : 8 Lakh : 8 Lakh taxable

      Fourth year turnover : 5 Lakh : Exempt full

  48. Hello Ma’am,

    I am a proprietor of my Recruitment Firm. We are giving recruitment services to the corporate clients. I have taken the service tax no. last year. Also i charged the service tax in my invoices. But last year when the reverse charge mechanism issued, we haven’t charged the service tax in invoices. So My question is that, do we have the liability to pay service tax for that invoices in which we haven’t charged service tax. Plz clarify so much confusion.

  49. By heema

    Dear Madam,

    We are a company providing installation services & out turnover has not crossed 9 lacs but still we have taken voluntary registration under Service Tax. Kindly guide whether we have to charge service tax on because we have taken voluntary registration or we can still avail Small Service Provider exemption.

    • By admin

      You can avail small service provider exemption if fulfill conditions given in article.

  50. By CHANDRA PRAKASH SINGHAL

    My client have registered under service tax in Oct 2015 and his turnover is less than 10 lacs in previous year and he not charges any service tax to client

    not Service tax return is filling so how can I take and where in Half yearly return can claim SSI Exemption. Pls guide

    I find your article very helpful thank and hope for same in future.

  51. By Pranav

    Hi. How is service tax calculated if I am selling services to some company or person of USA . ?

  52. By PRATIBHA

    I AM AN INDIVIDUAL, AND HAVING PROPRIETARY FIRM ALSO, SOME BILLING IN NAME OF INDIVIDUAL AND SOME IN NAME OF FIRM, HOW TO CONSIDER TAXABLE TURNOVER

  53. By R Handa

    Mutual Fund distribution service has been moved from reverse charge to forward charge w.e.f. 01.04.2016.
    If the commission in the last Financial Year was 15 Lakhs , will the threshold exemption of 10L Lakhs be available in the first year – FY 2016-17 ( this will be the first year in which I would be taking registration ) or will it start from Day 1.

  54. By shailesh chawra

    I HAVE commercial property given on rent . for the financial year 2011-12 rent received was Rs. 13,10,000/- for 2012-13 reduced ( tenant vacated ) rent Rs. 953000/- . then for 2013-14 rent was Rs. 953000/- & 2014-15 rent was Rs. 953000/- . my query is –
    whether there is any tax liability for 2013-14 & 2014-15 . ( No tax invoice has been raised , no tax collected )
    whether exemption of Rs. 10,00,000/- is available for 2015-16 ( wherein rent again exceeds Rs. 10,00,000/- ).
    kindly advice

  55. By A.K.SHARMA

    I have business of Water filtration plant supplied to Govt departments.Under mega exepmtion notification vide S. No. 12 of the Notification No. 25/12-ST …are we exempted from Service Tax ?

  56. Ma’am, if a mutual fund distributor is having commission income of more than 10 lacs in fy 2015-16.earlier taxable under reverse charge.
    As per recent amendment the service tax liability is now on the mutual fund distributor himself , does he can avail small scale exemption if his turnover exceeds RS.10 lacs during current year also

  57. By LUTHRA TRADERS

    Dear Sir/Madam, I am running a cable tv company and my monthly collection is around 1.5 Lakh out of which around 1 lakh is paid to the parent company who provided the signal.Now my question is that my turnover for calculation of service tax will be considered as 1.5 Lakh per month or 50000/- per month. so what will be my turnover for 10 lakh exemption limit of service tax. Thanks in advance. Rgds..

  58. By VIJAY GUPTA

    Madam,
    I earned Rs.10.02 lakhs as Mutual Fund Commission and Rs.6.56 lakhs as other commission during FY 2015-16. From 01/04/2016, Mutual Fund commission has come under forward charge. Should I go for Service Tax Registration now, or wait for my total commission cross Rs.9 lakhs. Thanking you in advance.

  59. By JAYPAL SINGH

    Hello madam,
    i m already a registered company in service tax and now we are adding one more service so please let me know weather we are liable to charge service tax or first we have to register that service before we charge

    • By admin

      Amend service tax registration certificate before charging.

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