Small service Provider

Hi Sripada,

As per Sec.66A,If the person receiving Services is in India & Service Provider is located outside India,then such service will be treated as taxable service & it shall be treated to have been provided by Receiver himself in India & accordingly all provisions shall apply.

If that is the case,then in your case,registeration would be required & even Service Tax would required to be paid on said service.

As far as claiming Exemption upto Rs. 10 Lacs is concerned,Notification No. 6/2005 as further amended clearly says That abovesaid Services wont be counted while computing Receipts of 10 Lacs......In other words Exemption of Rs. 10 Lacs cant be claimed in respect of abovesaid Services. Hence Tax needs to be levied on such payments whenevr such payments are received.

However if service receiver is Individual and such service received by him is not for any business & commerce,Section 66A then wont apply.If that is the case, then no registeration required in your case & hence no service Tax liability 

For further clarification,Read Sec.66A with Sec. 68(2) of Finance Act alongwith Notification No. 6/2005 as further amended

Mr. Ritesh, i am talking for business purpose...!

Hi Sripada,

My entire reply didnt get posted.I am sending it again  

As per Sec.66A,If the person receiving Services is in India & Service Provider is located outside India,then such service will be treated as taxable service & it shall be treated to have been provided by Receiver himself in India & accordingly all provisions shall apply.

If that is the case,then in your case,registeration would be required & even Service Tax would required to be paid on said service.

As far as claiming Exemption upto Rs. 10 Lacs is concerned,Notification No. 6/2005 as further amended clearly says That abovesaid Services wont be counted while computing Receipts of 10 Lacs......In other words Exemption of Rs. 10 Lacs cant be claimed in respect of abovesaid Services. Hence Tax needs to be levied on such payments whenevr such payments are received.

However if service receiver is Individual and such service received by him is not for any business & commerce,Section 66A then wont apply.If that is the case, then no registeration required in your case & hence no service Tax liability 

For further clarification,Read Sec.66A with Sec. 68(2) of Finance Act alongwith Notification No. 6/2005 as further amended

Hi Sripada,

My entire reply is not posting properly.What you are seeing is only a part of it.I dont know whats the problem????Is there any limit on No. of characters?? I dnt think so.........

Hi Ritesh,

Please do send private message to me using Send PM option.

Please see the attached file

Ritesh, article was empty..!!!

Hi Sripada,

there is a problem with my System,My MS Office..................... Thats why i cant even send you an attachment. I will try for the one last time. Its now getting frustrating for me..........I knw for you too, it might be getting frustrating ...................................................

I hope you get it this time atleast.

As per Sec. 66A, Yes Service Receiver will be required to get registered & pay Service tax.

As far as claimimg Exemption of Rs. 10 lacs is concerned, Not. No. 6/2005 as further amended clearly states, that abovesaid Service wont be counted for computing Rs. 10 Lacs. In other words,Exemption of Rs. 10 Lacs can't be claimed in respect of abovesaid Services........Hence tax needs to be levied on such payments as & when such payments are received .

For further clarification, do read Sec. 66A read with Se. 68(2) of Finance Act along with Not. No. 6/2005 as further amended. 

However Sec. 66A wont be applicable if Service Receiver is an Individual & Services received are not for any Business & Commerce.......Since you have already stated that it is for Business, hence Sec. 66A would be attracted