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Exemption

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This query is : Resolved

tony (Querist)

13 March 2016 Dear Sir,
In one of the case assessee has to obtain ST Registration to get service Centre a Home Appliances Co., However still his annual turnover would be Approx 4-5 lacs. Whether still he can claim exemption in ST-3, as his turnover is below 10 lacs ?
or he has to charge and deposit service tax, as he has obtained registration?
Please clarify.
Thanks

RAJAT

RAJAT (Expert)

14 March 2016 Yes, He can claim exemption as a 'Small Service provider' provided that turnover remains below Rs 10 Lac in the Financial year. As soon as the turnover goes above 10 lac in any Financial year, he would have to start charging service tax from 10 lacs onwards in that Financial year and then from 1st invoice in all succeeding financial years.
Service tax return is to be filed from completion of first quarter from the date of registration itself and in ST-3 he can claim the exemption under notification No 33/2012

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