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Service tax exemption limit in year 2014-2015

Bindu jashwani (Internal Auditor SAM GRUOP OF INSTITUTIONS) (119 Points)

28 August 2014

what is the exemption limit for small service providers and is it necessary to file declaration for being SSP. what is the limit for declaration.

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16 Replies

Mayank Jain (Student) (575 Points)
Replied 28 August 2014

basic exemption limit for ssp is 10 lac

but at 9 lac u hv to register urself n get the service tax reg. no.

1 Like

Accounting Home Services (Finance Executive ) (733 Points)
Replied 28 August 2014

no need to submit any type of declration in ST department

1 Like

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 28 August 2014

If your gross receipts from taxable services during the year exceed Rs. 9 Lacs, then you are required to apply for service tax registraiton in ST-1 form. The threshold limit is Rs. 10 Lacs for which no service tax is required to be paid as per notification no. 33/2012-ST. But if the aggregate value of all taxable services was exceeding Rs. 10 Lacs in the preceding Financial Year, then the benefit of threshold exemption of Rs.10 Lacs is not available. Also, any amount collected as representing service tax (whether taxable or not) must be paid to the credit of government.

1 Like

SREENIVAS (ACCOUNTS MANAGER) (36 Points)
Replied 28 August 2014

manoj sir , well explained

Trainee (Accounts Executive) (325 Points)
Replied 28 August 2014

I think you have got solved your query..

Udit Pandya (Articled Assistant) (41 Points)
Replied 28 August 2014

Any amount above Rs. 9 lac will breach the SSP limit. Form ST1 to be filled after crossing Rs. 9 lacs. But service tax will be collected after collection reaches Rs. 10 lacs

Nitika Bapna (Student CA Final ) (29 Points)
Replied 29 August 2014

Please explain the meaning of this line as above mentioned "But if the aggregate value of all taxable services was exceeding Rs. 10 Lacs in the preceding Financial Year, then the benefit of threshold exemption of Rs.10 Lacs is not available. "

Nitika Bapna (Student CA Final ) (29 Points)
Replied 29 August 2014

Pankaj mandwani (Associate) (25 Points)
Replied 29 August 2014

It means the aggregrate value of all your taxable services in the previous year exceeds rupees 10 lacs Thn frm the next year(current f.y) you have to start collecting service tax from beginning Means u cannot avail the threshold limit of 10 lac in current fy or in short u cannot be ssp

ranjan (Ca) (23 Points)
Replied 29 August 2014

If py your total service amount excced 10 lakhs then u have to pay service tax in current year on full amount of service rendered. There is option for payment of service tax on payment basis if ur total service amount does not exceed 50 Lakhs in current year.

Nitika Bapna (Student CA Final ) (29 Points)
Replied 29 August 2014

Suppose in F.Y. 2013-14 the assessee crossed the limit of 10 Lacs. It got registered in the same year it had provided services of Rs. 12 Lacs. So it is liable to pay service tax on 2 Lacs only?

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 29 August 2014

@ Nitika Yes, as the assessee crossed the limit of Rs. 10 Lacs during FY 2013-14, he is liable to pay service tax on Rs. 2 Lacs only. But, in the next FY 2014-15, the exemption is not available and service tax is payable from Re. 1 onwards.

sajjan Kumar Sharma (Sr. Manager) (22 Points)
Replied 30 August 2014

With reference to the provision "But if the aggregate value of all taxable services was exceeding Rs. 10 Lacs in the preceding Financial Year, then the benefit of threshold exemption of Rs.10 Lacs is not available. "

Taxability will be calculated as under If receipt from taxable services is as under:

FY 09-10 Rs. 8 Lacs

FY 10-11 Rs. 11 Lacs Taxable amount is Rs. 1 Lacs

FY 11-12 Rs. 7 Lacs Taxable amount is whole Rs. 7 Lacs

FY 12-13 Rs. 9.5 Lacs Nothing is taxable