Small scale service provider.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 April 2015
i want to know every thing about exemption limit of RS.10,00,000/-
27 April 2015
What is Exempted vide notification No. 33/2012-Service Tax:
Central Government has exempted taxable services of aggregate value not exceeding ten lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66B of the said Finance Act. But it is clarified that nothing contained in this notification shall apply to following (as per proviso);
(i) taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; Here “brand name” or “trade name” means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person, OR
(ii) such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified in section 68(2)[1] of the said Finance Act read with Service Tax Rules,1994.
It is absolutely clear by this proviso that services provided under “brand or trade name of others” and services provided under “reverse charge mechanism” as specified in section 68(2) are out of ambit of this notification. The purpose of specific mention of non-inclusion of GTA service [falling under section 68(2)] in the aggregate value vide para 3 of this notification is that legal position of consignee is of SR but of consigner is of agent to SR (while GTA is SP).
Further, as per para 10.1.3 of ST Education Guide, the liability of the service provider and service recipient are different and independent of each other. Thus in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is required to pay under the partial reverse charge mechanism.
Central Government has exempted taxable services of aggregate value not exceeding ten lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66B of the said Finance Act. But it is clarified that nothing contained in this notification shall apply to following (as per proviso);
(i) taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; Here “brand name” or “trade name” means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person, OR
(ii) such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified in section 68(2)[1] of the said Finance Act read with Service Tax Rules,1994.
It is absolutely clear by this proviso that services provided under “brand or trade name of others” and services provided under “reverse charge mechanism” as specified in section 68(2) are out of ambit of this notification. The purpose of specific mention of non-inclusion of GTA service [falling under section 68(2)] in the aggregate value vide para 3 of this notification is that legal position of consignee is of SR but of consigner is of agent to SR (while GTA is SP).
Further, as per para 10.1.3 of ST Education Guide, the liability of the service provider and service recipient are different and independent of each other. Thus in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax. However, the service recipient shall have to pay service tax which he is required to pay under the partial reverse charge mechanism.
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