Basic exemption notification

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Anand K (Querist)
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09 September 2013 Sir, Could you pls let me know what is the notification that is been passed by the govt.In order to avail the benefit of threshold exemption of service tax aggregate to Rs.10 lac for the FY 2011-12 & 2012-13.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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09 September 2013 The following are the conditions to be complied to avail the threshold limit of Rs.10 lakhs:

The provider of taxable service has the option not to avail the exemption and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;

The provider of taxable service shall not avail CENVAT credit of service tax paid on any input services used for the providing of the said taxable service for which exemption from payment of service tax is availed of;

The provider of taxable service shall not avail CENVAT credit on capital goods received, during the period in which the service tax provider avails exemption from payment of service tax;

The provider of taxable service shall avail the CENVAT credit only on such inputs or input services received, on or after the date on which the service provider starts paying service tax and used for the provision of taxable service for which service tax is payable;

The provider of taxable service who starts availing exemption shall be required to pay an amount equivalent to the CENVAT credit taken by him, if any, in respect of such inputs lying in the stock or in process on the date on which the provider of taxable service starts availing exemption;

The balance of CENVAT credit lying unutilized in the account of the taxable service provider after deducting the amount, if any, shall not be utilized and shall lapse on the day such service provider starts availing the exemption;
Where a taxable service provider provides one or more taxable services from one or more premises, the exemption shall apply to the aggregate value of all such taxable services and from all the premises and not separately for each premises or each service; and

The aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed Rs.10 lakhs in the preceding financial year.

In respect of Goods Transport Agency the payment received towards the gross amount charged by such GTA under Section 67 of the Finance Act for which the person liable for paying service tax is as specified under Section 68(2) of the said Finance Act read with Service Tax Rules, 1994 shall not be taken into account, to avail exemption under this Notification.

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https://www.simpletaxindia.net/2012/09/service-tax-exemption-limit-who-can.html

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