Basic exemption of 10 lakh rupees

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This query is : Resolved

Jitendra (Querist)

01 November 2016 can service provider take exemption of 10 lakh rupees in case of his liability under partial reverse charge mechanism????

Rajannaidu

Rajannaidu (Expert)

01 November 2016 Yes. A small scale service provider has the option of availing service tax exemption, in case aggregate turnover value of taxable service does not exceed Rs. 10 lakhs in a financial year. He won’t be required to be pay service tax on such service. However this option of availing service tax exemption is not available for Service receiver under scheme of partial reverse charge mechanism

Jitendra

Jitendra (Querist)

02 November 2016 but as per 33/2012, Provided that nothing contained in this notification (33/2012) shall apply to,- (i) taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; or (ii) such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules,1994. and I think here such person means service provider as well as service receiver, so Service provider cannot such exemption

Jitendra

Jitendra (Querist)

02 November 2016 As per 33/2012 provided that nothing contained in this notification shall apply to,- (i) taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; or (ii) such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules,1994. I think here such person means service provider as well as service receiver so service provider cannot take such exemption

Jitendra

Jitendra (Querist)