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. Applicable fromRate of service taxNotification 1/4/20054 lakhs6/2005 dated 1/3/2005 1/4/20078 lakhs4/2007 dated 1/3/2007 1/4/200810 lakhs8/2008 dated 1/3/2008 1/7/201210 lakhs33/2012 dated 20/6/2012 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. Aggregate value of taxable services provided for previous yearAggregate value of taxable services provided for current yearService tax applicable Less than 10 lakhs or 10 lakhsLess than...

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