Small service provider exemption for works contractor
This query is : Resolved
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.
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.
14 June 2016
Exemption u/N 33/2012-ST applicable on Rs. 8,40,000 which is fully exempt.
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14 June 2016
Thank you very much Sir for your reply. Is there any decided case law with similar facts?
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/-?
15 June 2016
You have to consider only Rs. 8,40,000 only.
16 June 2016
Thank you so much Sir.
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