Small service provider exemption query

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This query is : Resolved

Rakesh Rao (Querist)
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13 June 2016 A company registered voluntarily under Service Tax when the value of Service was just around Rs. 2,00,000/- and started collecting and paying Service Tax on every invoice there after. However, the total value of Service provided during that financial year was Rs. 8,00,000/-.
However in the Service Tax Return only the Value of Service provided after the Registration (i.e. Rs. 6,00,000/-) was shown.
Now ST Authority contends that entire Rs. 8,00,000/- should have been shown in the Return and exemption under notification 33/2012-ST should have been claimed for Rs. 2,00,000/-.
Is the contention correct? What difference does it make? As it is, the Value has not exceeded Rs. 10,00,000/-. Also due to voluntary registration the Revenue has earned more. The company could as well stay quite by not registering itself.
Please advice.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 June 2016 Yes. their contention is right. But as your total service not exceeded 10 lacs it doesn't make any difference. Dept should have appreciated you in collecting and paying tax on 6 lacs instead of finding mistake of no use.

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Rakesh Rao

Rakesh Rao (Querist)
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14 June 2016 Thank you very much Sir !!!

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