Whether threshold limit will be available

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This query is : Resolved

amol (Querist)

01 December 2015 Our company is in Jewellery industry. We have already taken ST registeration in reverse category. We are starting to provide labour services on ornaments of other companies. i.e. only labour service will be provided but ornaments will belong to oyher compnay. So if we take a fresh registeration of ST in service provider category, then whether we will be able to get benefit of threshold limit of 10 lakhs rs for service tax registeration.

Since we are having ST registeration as service receiver While obtaining fresh service tax registeration in service provider category still we can avail 10 lakhs basic threshold limit.

Kindly provide the necessary solution at the earliest

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

01 December 2015 You have an existing registration as service receiver for Reverse Charge. Under RCM there is no threshold exemption and the tax is payable from the first rupee of service received. This registration has no impact, if one is not a service provider. Any service provider (in your case registration for labour services) is registration as aservice provider. Any service provider is entitled to enjoy exemption from payment of output service tax till the threshold limit (Rs.10 lakhs currently) is reached.
Please note all reverse charges must be paid in cash i.e. online. the tax so paid is entitled to CENVAT Credit and may be utilized to pay of output tax subject to the rules.

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