Dingu (Practice) (220 Points)
29 October 2012Friends,
As per 6/2005, Aggregate value is calculated for Small service provider for calculating the same, value of service less service which is exempted from service tax is excluded. Now Government issues abatement notification exempting a percentage of service from service tax.
I find that for calcuating the Aggregate value of service the abated value should be taken. is there some case law or CBEC clarificaion addressing the same.
CA Sahil Singla..
(Service Tax )
(3746 Points)
Replied 29 October 2012
Sir
Explaination to Notification 6/2005 clearly states that Aggregate value does not include the value of taxable services which are WHOLLY exempt from service tax.
Abatement does not imply total exemption. So full value will be included in Aggregate value and not abated value.
Dingu
(Practice)
(220 Points)
Replied 31 October 2012
Sir,
Gross amount before abatemnt is not the "gross amount charged or received for the PROVISION OF SERVICE" (Section 67)
The notification for abatement says that the abatement given is exempt from service tax WITHOUT ANY CONDITIONS attached to it. If we intrepret the meaning of WHOLLY EXEMPT from srvice tax, yes the value of service for which abatement is given is not charged to service at all.
Secondly abatemt is given only when there is a portion of transfer of goods is also involved (Excluding GTA Service) which is covered by different act and is a state subject. Thats why it is excleded at a adhoc by prescribing a percentage since it is not a service
including the same for the purpose of regsitration calulation and SSP is unjust.
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
CAclubindia
