Registration of service tax for exempted services

Queries 3863 views 8 replies

CA Sandeep Biradar

CA Practice

42 Points Joined May 2013

Hi All,

Would like to share my understanding on service tax registration on exempted services (other than exemption on small service provider)

Registration of Service Tax:

Service Tax (Registration of special category of persons) Rules, 2005 (amended by notification no.10/2008)
As per clause 3(2) of the notification.10/2008 "Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds nine lakh rupees shall make an application to the jurisdictional Superintendent of Central Excise in such form as may be specified, by notification, by the Board, for registration within a period of thirty days of exceeding the aggregate value of taxable service of nine lakh rupees

Aggregate Value of Taxable Services:
“Aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued or required to be issued, as the case may be, during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66 of the said Finance Act under any other notification‟

Therefor, if an assessee whose service is exempt under say "Notification No.25/2012 - Mega Exemption" then he doesnt have to get a service tax registration till he enjoys that benefit.

Please share your views on my understanding.

Thanks,

Sandeep

Replies (8)

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Thanking you for sharing you wide knowledge in this regard.

CA Sandeep Biradar

CA Practice

42 Points Joined May 2013

Thanks for your appreciation. But can you tell me whether my understanding is right???

dileep

accounts

29 Points Joined November 2009

Hi Sir,

As per Notification No.25/2012 - Mega Exemption if exemption service is more than Rs 1000000

whether service tax registration is required or not please give the suggession .

Regards,

Dileep

Sivaraman A R

1044 Points Joined January 2009

In my opinion, no Service tax reigstration is needed, if providing only exempted service.(Exempted Service).

Actually exempted service is a taxable service, which is specifically exempted by Notification.

Services mentioned in negative list are non-taxable services.

So if we simple read the sentence - Any provider of taxable service... It will give an impression that we should take registration.

But the aggregate value of taxable service is defined in Service tax Special category of persons rules 2005. Even after the introduction of negative this rule is still followed.

The aggregate value of taxable service which is quoted in your question is wrong. You have taken from notification 33/2012 -SSE exemption.

You should have taken from Special category rule.

What ever the case may be. No registration, if providing only Mega exempted service.

Regards

Siva

Sivaraman A R

1044 Points Joined January 2009

In my opinion, no Service tax reigstration is needed, if providing only exempted service.(Exempted Service).

Actually exempted service is a taxable service, which is specifically exempted by Notification.

Services mentioned in negative list are non-taxable services.

So if we simple read the sentence - Any provider of taxable service... It will give an impression that we should take registration.

But the aggregate value of taxable service is defined in Service tax Special category of persons rules 2005. Even after the introduction of negative this rule is still followed.

The aggregate value of taxable service which is quoted in your question is wrong. You have taken from notification 33/2012 -SSE exemption.

You should have taken from Special category rule.

What ever the case may be. No registration, if providing only Mega exempted service.

Regards

Siva

Sivaraman A R

1044 Points Joined January 2009

In my opinion, no Service tax reigstration is needed, if providing only exempted service.(Exempted Service).

Actually exempted service is a taxable service, which is specifically exempted by Notification.

Services mentioned in negative list are non-taxable services.

So if we simple read the sentence - Any provider of taxable service... It will give an impression that we should take registration.

But the aggregate value of taxable service is defined in Service tax Special category of persons rules 2005. Even after the introduction of negative this rule is still followed.

The aggregate value of taxable service which is quoted in your question is wrong. You have taken from notification 33/2012 -SSE exemption.

You should have taken from Special category rule.

What ever the case may be. No registration, if providing only Mega exempted service.

Regards

Siva

Sivaraman A R

1044 Points Joined January 2009

In my opinion, no Service tax reigstration is needed, if providing only exempted service.(Exempted Service).

Actually exempted service is a taxable service, which is specifically exempted by Notification.

Services mentioned in negative list are non-taxable services.

So if we simple read the sentence - Any provider of taxable service... It will give an impression that we should take registration.

But the aggregate value of taxable service is defined in Service tax Special category of persons rules 2005. Even after the introduction of negative this rule is still followed.

The aggregate value of taxable service which is quoted in your question is wrong. You have taken from notification 33/2012 -SSE exemption.

You should have taken from Special category rule.

What ever the case may be. No registration, if providing only Mega exempted service.

Regards

Siva

Sivaraman A R

1044 Points Joined January 2009

In my opinion, no Service tax reigstration is needed, if providing only exempted service.(Exempted Service).

Actually exempted service is a taxable service, which is specifically exempted by Notification.

Services mentioned in negative list are non-taxable services.

So if we simple read the sentence - Any provider of taxable service... It will give an impression that we should take registration.

But the aggregate value of taxable service is defined in Service tax Special category of persons rules 2005. Even after the introduction of negative this rule is still followed.

The aggregate value of taxable service which is quoted in your question is wrong. You have taken from notification 33/2012 -SSE exemption.

You should have taken from Special category rule.

What ever the case may be. No registration, if providing only Mega exempted service.

Regards

Siva