Ssi computation

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This query is : Resolved

Abhishek Sharma (Querist)

21 August 2013 Sir,

An assessee is engaged in providing Taxable Services since past including Restaurant Service (With AC Facility only) which has become taxable from 01.04.2013.

Upto 31.03.2013 the value of other taxable service (excluding Restaurant Service as it is taxable from 01.04.13, in this case) is below 10.0 Lacs. As such the assesse did not take registration.

But with restaurant service in tax bracket it has applied for Registration & is thinking to Opt for SSI Exemption.

But The Department has informed that for SSI Computation, the value of taxable service provided in 2012-2013 ""INCLUDING RESTAURANT SERVICE"" shall be counted. But sir since the service was exempted in the F.Y. 2012-13, HOW CAN THE SAME BE INCLUDED FOR SSI COMPUTATION??

Please enlighten/advice with any reference to case study/notifications/circulars..

Thanks in Advance

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

21 August 2013 The Kerala High court has struck down the constitutional validity of service tax on restaurants and therefore it may not be payable at all. See the articles section for articles on the same for more clarity.

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