Professional service in same premises by more than 1 person

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Krishna Sudha (Querist)

01 January 2014 Professional service provided in the same premises by two or more individuals under the same firm name and these individuals having their own separate files and billings,would service tax basic exemption limit of Rs.10,00,000 be applicable to all the individuals and firm seperately
Eg.Firm has three partners
GTI Firm - Rs.10,00,000
GTI Partner 1 - Rs.10,00,000
GTI Partner 2 - Rs.10,00,000
GTI Partner 3 - Rs.10,00,000

Can the benefit of basic exemption be availed by all, given the billing and file bifurcation is made in separate names

Annu Agarwal

Annu Agarwal (Expert)

01 January 2014 Sir the Small service provider exemption is avavilable to "Person" providing taxable service upto the value of 10,00,0000.
The defination of Person as per Section 65B includes Partneship firm and not partners individuallly.
Therefore the SSI Exemption as provided by notification No.33/2012 is available to the Partnership firm as a whole and not in respect to each partner.

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Krishna Sudha

Krishna Sudha (Querist)

02 January 2014 What if there is adequate documentation and details to prove that the billings and fees are bifurcated to the partners directly and there is no mixing of income.
Its just a name sake partnership and like mentioned above the work and the fees are taken towards the partners separately

Annu Agarwal

Annu Agarwal (Expert)

02 January 2014 As per my view that would be very difficult to justify then for what purpose the partnership firm existed.
I suggest other experts to give their opinion on the same.

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Krishna Sudha

Krishna Sudha (Querist)

02 January 2014 Under the firm name those services are rendered which have to be provided in a firm's capacity

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