One of my client is providing lease services valuing Rs 9 Lakh and manpower services valuing Rs 5 Lakh which is payable under reverse charge by the service receiver. Now my doubt is whether this 5 lakh service under RCM will be included under aggregate value of services and my client will become liable for service tax?
28 September 2016
The Answer would be Yes, as that service is also a service provided by him. However, Proviso (ii) of Para 1 of the exemption notification says that nothing in this notification will apply to services where service receiver is liable to pay service tax (Under Reverse Charge) by reading that, it can be argued that the value of such services provided by service providers is not to be considered while calculating the exemption limit. In the same for GTA services, there is specific para 3 of Notification 33/2012-ST that the value of service of GTA, where GTA himself is not liable to Pay Service Tax, will not be considered for the exemption limit available to such GTA. Thanks.
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