Dr. N.M. Sudharsan (Managing Director) (26 Points)
21 December 2013I am a body corporate service reciepent with a taxable turnaover less than 10 lakhs and am exempted as an SSI. However, do I need to register and pay tax as a service recepient for GTA services or security services availed? I see advocate fee is exempt if my taxable turnover in the preceeding year is less than ten lakhs.
kumar hattanna
(Officer - Excise)
(525 Points)
Replied 21 December 2013
No need to get registration with ST. You are entitled use the benefit of SSI. Or you can make use of the Notification 33/2012.
There are two option
1) Pay tax and take input credit, if your total turnover doen't cross 10 laksh, even though you need to pay tax. and take credit of inputs which is used in or in relation to provide output service.
2) Once you cross the SSI limit, then you can get register with ST department start paying tax.
Regards
Kumar
ARJUN ASHOK
(CA Industrial Trainee)
(125 Points)
Replied 21 December 2013
a body corporate who is liable to pay ST under reverse charge mechanism need to get registration for service tax. if you are a service recepient of GTA services or security services then you have to get ST reg. as these two services are chargeable under reverse charge mechanism.
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 21 December 2013
In reverse charge method liability to pay the tax by service recepient is absolute and is not entitled for SSI exemption[Guidence note 10-miscellaneous-C.B.E&C Guide(Negative List)].Strangely the service provider is allowed to take the exemption under reverse charge method but the same is not allowed for servie recepient.
Dr. N.M. Sudharsan
(Managing Director)
(26 Points)
Replied 23 December 2013
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