Service provider giving multiple services

Queries 687 views 3 replies

CA Tushar Singhania

Asst. Manager Accts & Fin.

402 Points Joined June 2011

Dear Sir/Madam

There is a compnay which provides 3 diffrent services, one of which has not crossed the Rs. 10Lakh Limit. My query is wether the small service provider exemption is based on services or assessee i.e. it has crossed the Rs.10L limit for one service and hence is paying tax on that, what about the other service where the value of service rendered is just about Rs. 5L. So can it availe the exemption as this purticular service has not crossed Rs. 10L or should it pay service tax on it as it has as a whole got a TO of Rs. 15L

Replies (3)

Pradeep Nainawati

ACA

496 Points Joined June 2009

HI Tushar,

Threshold Exemption available under Notification 33/2012-ST is based on assessee. Company is required to pay ST on 5 lakhs.

CA Bhargav Nathwani

CA in Practice

8307 Points Joined August 2012

It should be based on assessee.

CA SHRAVANA DOTA

ACA

125 Points Joined July 2008

As per para 2 (vii) of Notification No. 33/2012-ST dated 20.06.2012, where a taxable service provider provides one or more taxable services from one or more premises, the threshold exemption limit of Rs. 10 Lakh under this notification shall apply to the aggregate VALUE OF ALL such taxable services and from all such premises AND NOT separately for each premises or EACH SERVICES.

The company can avail the threshold exemption limit and pay service tax on balance 5 Lakh rupees, provided aggregate value of all taxable services rendered by the company did not exceed Rs 10 Lakh in the preceeding financial year.