Service tax liability and small service provider

490 views 3 replies

Dear Experts,

I want to know what amount of ST liability the client Mr.X has. can he get excepmtion of ten lakhs as small service provider excluding the 1st service i wrote below.

Mr.X is a Commission Agent giving more then one service. Total Service provided Rs. 845000/- Approx.

1) Service provided as agent of Money Transfer Service provider ( Using brand name of a Company) Rs. 148000/- Approx.

2) Service provided as travel agent (has a term Authorised IRCTC agent for rail ticket) Rs. 442000/- Approx.

3) Service provided as an agent to few banks ( Money Remittance and other service) Rs 185000/- Approx.

4) Other Services (Agent of Company provide recharge, bill payment, DTH recharge, Lic Payment Etc) Rs 70000/- Approx.

 

The amount are approx. the 

Replies (3)
Small Service Providers are exempted from obtaining registeration if their total turnover does not exceeds 9 lakhs. They are exempted from collection and payment of service tax if their total turnover does not exceeds 10 lakhs.....in your case, mr x will not be required to take service tax registeration. He will also not be required to collect and deposit service tax as the turnover is below 10 lakhs. The important point that have been cited in various judicial pronunciations states that the exemption of 10 lakhs is provided to "service provider" and not to the services provided. Irrespective of the no.of service that he provides, the exemption is required to be calculated on "service provider" basis. P.S. For services covered under reverse charge, the above provisions do not apply. Thanks
Yes he can. What's stopping you here !!!

Thank you for the rply.

 

But SIr in point 1 i have mentioned that he is using brand name of a company to provide the service.

as what is told to me he is liable to pay tax for that.

i am yet not confirm about all other service.

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