08 March 2016
Hello Expert, my query is ,"if I am providing a service of lodge for rupees below 1000 (declared Tariff) with no discount and my gross receipts in the year exceeds Rs 1000000 " in such a case do I need to register for service tax .
Since, you are engaged in provision of exempted service (Exempted vide mega exemption notification no. 25/2012-ST dated 20.06.2012), you need not take registration from the service tax department
Rule 3 of Service Tax (Registration of Special Category of Persons) Rules, 2005, a provider of taxable whose aggregate value of taxable service exceeds Rs. 9 lakhs is required to take registration with the service tax department.
Further the term "Aggregate value of taxable service" has been defined in the aforesaid rules and such definition specifically excludes gross amount received towards provision of exempted service.
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