Small service provider exemption for works contractor

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Rakesh Rao (Querist)

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)

14 June 2016 Exemption u/N 33/2012-ST applicable on Rs. 8,40,000 which is fully exempt.

Message likes : 1 times

Rakesh Rao

Rakesh Rao (Querist)

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)

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)

15 June 2016 You have to consider only Rs. 8,40,000 only.

Rakesh Rao

Rakesh Rao (Querist)

16 June 2016 Thank you so much Sir.

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