Small service provider exemption : Detailed guide

Service tax providers has small relief via small service provider exemption. Last update for it is in ┬ávia 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. ┬áSmall 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 , Individual HUF Company AOP BOI Firm Society LLP Government Local...

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