Query relating to small service provider exemption
This query is : Resolved
06 October 2012
I want to know about how turnover should be determined for claim exemption in case of civil contractor providing service with material. As per maharashtra vat act he has to pay works contract on 70% contract value & service tax on balance 30%, but i want to know if above 30% is not exceeds Rs. 10 lakhs then whether it is correct to claim SSP expemtion under service tax.
Total contract value is 30 lakhs out of this Rs. 9 lakhs is labour portion which is attributable to service tax then exemption allowed or not, please clearify in detail which will very helpful for me.
Thanking you in anticipation
Total contract value is 30 lakhs out of this Rs. 9 lakhs is labour portion which is attributable to service tax then exemption allowed or not, please clearify in detail which will very helpful for me.
Thanking you in anticipation
07 October 2012
Where the separate contract for material 21 lakhs and 9 laksh for labour exists then the exemption would be available.
Composite contracts claiming the same maybe disputable.
Composite contracts claiming the same maybe disputable.
08 October 2012
Sir thank for replying my query,
No separate contract exist
No separate contract exist
08 October 2012
sir i am waiting for your valuable view
19 July 2025
Relevant Provisions (as per Finance Act, 1994 - prior to GST)
Small Service Provider (SSP) Exemption Notification No. 33/2012-ST (effective from 1st July 2012) provides exemption from service tax if:
Aggregate value of taxable services rendered in the previous financial year does not exceed ₹10 lakhs.
Exemption is available up to ₹10 lakhs in the current year as well.
In case of composite works contract, taxable value is determined after abatement or using composition scheme (e.g. 40% of total value being taxable, or actual service value via Rule 2A of Service Tax (Determination of Value) Rules).
Small Service Provider (SSP) Exemption Notification No. 33/2012-ST (effective from 1st July 2012) provides exemption from service tax if:
Aggregate value of taxable services rendered in the previous financial year does not exceed ₹10 lakhs.
Exemption is available up to ₹10 lakhs in the current year as well.
In case of composite works contract, taxable value is determined after abatement or using composition scheme (e.g. 40% of total value being taxable, or actual service value via Rule 2A of Service Tax (Determination of Value) Rules).
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