service tax applicability

 a individual sub contractor is raising bill for rs. 10 lacs to a SEZ UNIT & not charging service tax due to SEZ UNIT.Now he is raising bill to a delhi based company for Rs. 3 Lacs .Whether he is liable to get registration with service tax department. Whether he will charge service tax on Bill of Rs. 3Lacs or he can take benefit of Rs. 8 lacs of basic exemption .This is the first year of the individual.
Replies (5)
YOU HAVE TO CHARGE SERVICE TAX ON TAXABLE SERVICE TAX 3 LAC, ONLY FIRST 8 LACS IS NOT TAXABLE WHICH INCLUDES EXEXPTED SERVICE ALSO.
YOU HAVE TO CHARGE SERVICE TAX ON TAXABLE SERVICE TAX 3 LAC, ONLY FIRST 8 LACS IS NOT TAXABLE WHICH INCLUDES EXEXPTED SERVICE ALSO.
Basic exemption of Rs 8,00,000/- includes exempted sale of service , hence , sevice provider , should get ST Regn and suppose to deduct ST on further sale of service.
AS per Section 3(2) Service tax (RSCP) Rules,2005 Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds [seven lakh rupees]2 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 [seven lakh rupees] “aggregate value of taxable service” means the sum total of first consecutive payments received during a financial year towards the gross amount, as prescribed under section 67 of the Act, charged by the service provider towards taxable services but does not include payments received towards such gross amount which are exempt from the whole of service tax leviable thereon under section 66 of the Act under any notification other than Notification No. 6/2005-Service Tax, dated the 1st March, 2005
FOR TAXABILITY -------AMOUNT 7LACS WILL BE SUBSTITUTED BY 8 LACS

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