Small service provider

For determining eligibility of SSP, do we consider abated value (say 60% of gross receipts from renting of guest house amounting to Rs 60,000) or do we consider gross receipts (100%) (say Rs 100,000).

There are opinions supporting both.

Also as per the case of Ashok Kumar Mishra vs CCE, abated value (60,000 as per my example) must be taken.

Please help me in reaching the conclusion.

For reference refer Notification No. 33/2012.


*Refer Notification No. 33/2012.


diff % for different type of services covered

abated value

Undoubtedly abated value.



Many readers have the question whether abated value should be considered for small service provider exemption. While considering aggregate value for small service provider exemption limit, consider value before abatement to calculate exemption.

Only value of services which is exempted from whole of the service tax should be deducted from taxable turnover.


Total turnover of business: 17,00,000

(a) Wholly exempted services: 2,00,000

(b) Services on which Abatement at 50% available : 10,00,000

(c) Services on which no abatement is available: 5,00,000

calculation of taxable turnover for small service provider exemption:

0 (a) + 10,00,000 (b) + 5,00,000 = 15,00,000.

Based on notification no. 33/ 2012 of service tax.

Value of taxable Services should be considered and hence it is the abated value that is relevant here.

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As per Notification no. 33/2012 

it is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding ten lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66B of the said Finance Act.

No doubt eg. given by the Ms. Manisha is correct "taxable services means any services on which service tax is leviable under serction 66B ,

Section 66B There shall be levied a tax (hereinafter referred to as the service tax) at the rate of twelve per cent. on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed.

as per above definition only negative services which are not taxable. However as per the wording of the cited case law of Sh. Ashok Kumar Misra it is in practice that we provide benefit to the service provider and consider only taxable value for the pupose of given SSP exemption.


Conclusion: In my opinion do as per the practices followed by the practicioner. 



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