Service tax applicability on t/o less than 10,00,000

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Saurabh

50 Points Posted on 14 May 2016

Dear Members;

If the Proprietorship firm, have taken a Service Tax Registration Number recently for the providing Man-power services to the Private limited comapny and Partnership Firm under the RCM basis.

I need to know whether such proprietorship firm need to add service tax number in the Invoice isssue by them, even though they have not crossed the Turnover of Rs. 10,00,000 .
As the service provided by this Proprietorship firm is on RCM Basis, then also they can take the benfit of Rs.10,00,000 basic exemption from charging service tax.

Please guide..

Thank you

Replies (4)

Niraj Kumar Sinha

Sr. Officer SPSIL

469 Points Posted on 14 May 2016

If your provided service comes under RCM, you need not to mention your service tax registration number on your bill. And in this situation you do not require to charge Service Tax on your bill so no question areise of Rs. 10 lac exemption.

Saurabh

50 Points Posted on 14 May 2016

Thank you Niraj SIr,

so, if we provide the service to proprietorship firm , at that time we need to charge service tax right.

So at that time we can claim 10,00,000 exemption..? or we cannot take any exemption under RCM.?

Regards;

Mir Irshad Ali

Partner

212 Points Posted on 16 May 2016

Exemption from payment of Service Tax upto limit of Rs. 10 lakhs is applicable, if the aggregate value of clearance in the preceeding financial year is less than Rs. 10 Lakhs.

If the aggregate value of clearance in the preceeding financial year is less than Rs. 10 Lakhs (including the value of services provided to body corporates), then the Exemption from payment of Service Tax upto limit of Rs. 10 lakhs is applicable for the present year, the service tax for services provided to Proprietory/Partnership clients is to be paid after crossing exemption limit of Rs. 10 lakhs (including the value of services provided to body corporates), in the present year .