what is the exemption limit for small service providers and is it necessary to file declaration for being SSP. what is the limit for declaration.
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Service tax exemption limit in year 2014-2015
Replies (16)
basic exemption limit for ssp is 10 lac
but at 9 lac u hv to register urself n get the service tax reg. no.
no need to submit any type of declration in ST department
If your gross receipts from taxable services during the year exceed Rs. 9 Lacs, then you are required to apply for service tax registraiton in ST-1 form. The threshold limit is Rs. 10 Lacs for which no service tax is required to be paid as per notification no. 33/2012-ST. But if the aggregate value of all taxable services was exceeding Rs. 10 Lacs in the preceding Financial Year, then the benefit of threshold exemption of Rs.10 Lacs is not available. Also, any amount collected as representing service tax (whether taxable or not) must be paid to the credit of government.
manoj sir , well explained
I think you have got solved your query..
Any amount above Rs. 9 lac will breach the SSP limit. Form ST1 to be filled after crossing Rs. 9 lacs. But service tax will be collected after collection reaches Rs. 10 lacs
Please explain the meaning of this line as above mentioned "But if the aggregate value of all taxable services was exceeding Rs. 10 Lacs in the preceding Financial Year, then the benefit of threshold exemption of Rs.10 Lacs is not available. "
Please explain the meaning of this line as above mentioned "But if the aggregate value of all taxable services was exceeding Rs. 10 Lacs in the preceding Financial Year, then the benefit of threshold exemption of Rs.10 Lacs is not available. "
It means the aggregrate value of all your taxable services in the previous year exceeds rupees 10 lacs
Thn frm the next year(current f.y) you have to start collecting service tax from beginning
Means u cannot avail the threshold limit of 10 lac in current fy or in short u cannot be ssp
If py your total service amount excced 10 lakhs then u have to pay service tax in current year on full amount of service rendered. There is option for payment of service tax on payment basis if ur total service amount does not exceed 50 Lakhs in current year.
Suppose in F.Y. 2013-14 the assessee crossed the limit of 10 Lacs. It got registered in the same year it had provided services of Rs. 12 Lacs. So it is liable to pay service tax on 2 Lacs only?
@ Nitika Yes, as the assessee crossed the limit of Rs. 10 Lacs during FY 2013-14, he is liable to pay service tax on Rs. 2 Lacs only. But, in the next FY 2014-15, the exemption is not available and service tax is payable from Re. 1 onwards.
With reference to the provision "But if the aggregate value of all taxable services was exceeding Rs. 10 Lacs in the preceding Financial Year, then the benefit of threshold exemption of Rs.10 Lacs is not available. "
Taxability will be calculated as under If receipt from taxable services is as under:
FY 09-10 Rs. 8 Lacs
FY 10-11 Rs. 11 Lacs Taxable amount is Rs. 1 Lacs
FY 11-12 Rs. 7 Lacs Taxable amount is whole Rs. 7 Lacs
FY 12-13 Rs. 9.5 Lacs Nothing is taxable
Ok got the point. Thanks everyone.
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