LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Small service provider

preksha (officer) (32 Points)

29 March 2015

can a honda dealer claim exemption of small service provider..as becoz service provided by using brand name of anothr person cannot avail smal services provider exempting..I think no expert know tis ans becoz had askd long bfre but no reply...

Reply
Follow
Share

4 Replies

sesha (accounts executive) (1101 Points)
Replied 30 March 2015

if u service provider turnover over under 9lakhs then service provider it is exempteed from servicetax.

Kamal Kansal (Chartered Accountant) (89 Points)
Replied 30 March 2015

No, the Honda dealer cannot claim the exemption of small scale provider because he is using the brand name or trade name of another person i.e. Honda company.

As per notification no. 33/2012 dt 20-6-12, Exemption provided to small scale provider is not applicable to :

-- taxable services provided by a person under a brand name or trade name, whether registered or not, of another person;

(“brand name” or “trade name” means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person)

preksha (officer) (32 Points)
Replied 30 March 2015

Thanx... nd can the honda dealer claim cenvat credit of excise duty paid for purchase of parts from honda manufacturer nd service tax chargd from customer while providing servicing of vehicles

Kamal Kansal (Chartered Accountant) (89 Points)
Replied 30 March 2015

Yes, As per Rule 3(1) of Cenvat Credit Rules, 2004 an output service provider can take credit of excise duty paid on inputs.

It means, Honda dealer can take cenvat credit of excise duty paid for purchase of parts from honda manufacturer which are used as inputs for providing service to customers.