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Ssp limit to catering services

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This query is : Resolved

krishnasamy D (Querist)
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09 November 2011 Dear Friends, I am in a need of clarification with respect to applicability of 6/2005 (Small service provider exemption) to catering service.

Clarrification required with respect to wheather the limit is to be calculated after abatement or before abatement (1/2006) ie 50%.

As per my reading
if a catering service provider whose gross receipts is above rs.20 lakhs and more need to pay service tax. (20L x50%)=taxable value of service ie 10 lakhs.

PUNEET GOYAL

PUNEET GOYAL (Expert)
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14 November 2011 Minimum exemption limit of rs. 10 lac under NN 6/2005 shall calculated before allowing exemption under NN 1/2006. In ur case you have crossed minimum exemption limit of rs. 10 lac accordingly you have to pay tax on rs 10 lac and after abatement it will be rs 5 lac.

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