Small service provider exemption for works contractor

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Rakesh Rao (Querist)
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13 June 2016 In case of Works Contract Service, is Small Service Provider's exemption limit u/N 33/2012-ST, applicable on Gross amount or Net amount?

Eg: If Total Value of Works Contract = Rs. 12,00,000/- Value of Service u/R 2A(ii) of Service Tax (Determination of Value) Rules, 2006 the deemed value of Service portion is 70% i.e. Rs. 8,40,000/-
Then will exemption u/N 33/2012-ST be applicable on Rs. 12,00,000/- i.e. balance Rs. 2,00,000/- taxable or entire Rs. 8,40,000/- is exempt? Does Aggregate value of Taxable Service include Rs. 12,00,000/- or Rs. 8,40,000/-?

Thank you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 June 2016 Exemption u/N 33/2012-ST applicable on Rs. 8,40,000 which is fully exempt.

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Rakesh Rao

Rakesh Rao (Querist)
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14 June 2016 Thank you very much Sir for your reply. Is there any decided case law with similar facts?

Rakesh Rao

Rakesh Rao (Querist)
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15 June 2016 If this is first year of operation,for the purpose of Registration of Service Tax, should the Value of Taxable Service be considered as Rs. 12,00,000/- or Rs. 8,40,000/-?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 June 2016 You have to consider only Rs. 8,40,000 only.

Rakesh Rao

Rakesh Rao (Querist)
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16 June 2016 Thank you so much Sir.

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