[ WORDINGS AS PER SERVICE TAX ACT/RULES:
1. Service Tax act/Rules has provided exemption to small scale service provider from service tax up to aggregate value of taxable services provided of 10 lakh in a Financial Year .
2. Above Exemption is admissible subject to following condition:
Taxable Service Provider has the option not to avail the said exemption and pay Service Tax on the taxable service and such option once exercised in a financial year shall not be withdrawn during the remaining part of such financial year.]
Referring above provision, my query is as follows:
If in any P.Y. One small scale service provider doesn't avail above exemption and pays ST on aggregate value of sevice provided (even though it doesn't exceed Rs.10 lacs)..
Then in such case for the next financial year,
Whether he has the option as to “availing or not availing the said exemption limit of Rs. 10 lacs” for paying service tax??
Hence if, for the next year, the aggregate value doesn't exceed Rs. 10 lacs....whether he may take stand that he will not pay Service Tax for next year by saying that aggregate value of service provided doesn't exceed 10 lacs??
CAclubindia
