Exemption for small service providers
This query is : Resolved
21 October 2013
According to N/N 33/2012. what should be included/excluded for availing the exemption as SSP. Please give response as soon as possible.
Suresh Ramaswamy
(Expert)
21 October 2013
The main provisions of Notification No 33/2012 are as below:
A small service provider (SSP) should not be providing services under a brand name or trade name of another person.
Services covered under Reverse Charge Mechanism like Security Services, Rent-a-Cab Services,Manpower Supply Services, Directors Services, Legal Services, GTA, etc. cannot be taken into consideration in deciding SSP status.
In other words, the service recipient of services under reverse charge Mechanism is liable to pay ST on services received of any amount, irrespective of whether the service provider is registered or not and whether service recipient has crossed the threshold limit or not.
Once a taxpayer opts for the status of SSP, he cannot withdraw the option during that financial year.
The SSP shall not avail of an CENVAT credit on inputs as long as he enjoys the exemption.
The SSP shall not avail of CENVAT credit on Capital Goods.
In any year where a service provider opts for the status of SSP, the balance of CENVAT credit lying unutilized shall lapse on the day the exemption starts.
These are more or less the inclusions / exclusions to be considered by a service provider opting for exemption as SSP.
A small service provider (SSP) should not be providing services under a brand name or trade name of another person.
Services covered under Reverse Charge Mechanism like Security Services, Rent-a-Cab Services,Manpower Supply Services, Directors Services, Legal Services, GTA, etc. cannot be taken into consideration in deciding SSP status.
In other words, the service recipient of services under reverse charge Mechanism is liable to pay ST on services received of any amount, irrespective of whether the service provider is registered or not and whether service recipient has crossed the threshold limit or not.
Once a taxpayer opts for the status of SSP, he cannot withdraw the option during that financial year.
The SSP shall not avail of an CENVAT credit on inputs as long as he enjoys the exemption.
The SSP shall not avail of CENVAT credit on Capital Goods.
In any year where a service provider opts for the status of SSP, the balance of CENVAT credit lying unutilized shall lapse on the day the exemption starts.
These are more or less the inclusions / exclusions to be considered by a service provider opting for exemption as SSP.
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