Service tax limit

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Mallika Shah (Querist)
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18 January 2016 an assessee (individual) get rental income and freight income. Freight income amounts to Rs.90000 net off expenses.
Should freight income be counted for calculating Service tax turnover limit for 10lakhs

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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18 January 2016 GTA-no Tresh Hold Limit.

A single composite service need not be broken into its components and considered as constituting separate services, if it is provided as such in the ordinary course of business. Thus, a composite service, even if it consists of more than one service, should be treated as a single service based on the main or principal service. While taking a view, both the form and substance of the transaction are to be taken into account. The guiding principle is to identify the essential features of the transaction. The interpretation of specified descriptions of services in such cases shall be based on the principle of interpretation enumerated in section 66 F of the Finance Act, 1994. Thus, if ancillary services are provided in the course of transportation of goods by road and the charges for such services are included in the invoice issued by the GTA, and not by any other person, such services would form part of GTA service and, therefore, the abatement of 70%, presently applicable to GTA service, would be available on it.

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