Small service provider under service tax. Small Scale Service Tax Exemption up to 10 Lakhs notified 2022-10-26

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Service tax is a tax levied on the provision of certain services in India. Small service providers, such as sole proprietors or small businesses, may be required to pay service tax if they provide certain taxable services.

There are several considerations that small service providers should keep in mind when it comes to service tax. Firstly, it is important to determine whether the services being provided are taxable or not. The Central Board of Excise and Customs (CBEC) maintains a list of taxable services, and it is the responsibility of the service provider to determine whether their services are subject to service tax.

If the services being provided are taxable, the small service provider will need to register for service tax. This involves obtaining a Service Tax Registration Certificate (STRC) and obtaining a Permanent Account Number (PAN) for the business. The small service provider will also need to keep accurate records of all services provided and the corresponding service tax due.

In addition to registering for service tax, small service providers will need to file service tax returns on a regular basis. The frequency of these returns will depend on the volume of services provided, with higher volume service providers required to file returns on a monthly basis and lower volume service providers required to file returns on a quarterly basis.

It is important for small service providers to understand their obligations under the service tax regime, as failure to comply with these obligations can result in penalties and interest being levied on the business.

In conclusion, small service providers in India may be required to pay service tax if they provide certain taxable services. It is important for these businesses to understand their obligations under the service tax regime, including the need to register for service tax, keep accurate records, and file regular returns. Failure to comply with these obligations can result in penalties and interest being levied on the business.

SMALL SCALE EXEMPTION UNDER SERVICE TAX PROVISIONS

small service provider under service tax

Sanjiv Agarwal Vide Notification No. Example — Suppose Mr. When service is provided by person under own brand name or trade name would be eligible for exemption for small service provider. Thus threshold exemption of Rs. The exemption scheme does not apply to person liable under section 68 2 of the Finance Act, 1994 or person other than service providers as specified under rule 2 1 d of Service Tax Rules, 1994. However materials consumed for providing services are part of service.

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SMALL SERVICE PROVIDER EXEMPTION

small service provider under service tax

If both the services put together exceeds 10 lakhs then he is liable to pay service tax in FY 2012-13. Already all AMCs given clarification that those earning more than 10 lakh this year only has to pay service tax over and above the exemption limit of 10 lakh. Is these payments are tax free? Taxable service has been defined in the law for all the services taxable. We can see through following table history of small service provider history. This provision is really hardship for service receiver because sometime service provider is not liable to pay service tax due to lower turnover but service receiver is liable to pay service tax due to applicability of RCM. Now notice has been received from Excise Deptt to pat service tax with interest. Now, this article gets importance only there is something new.

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Service Tax Exemption To Small Service Provider (SSP)

small service provider under service tax

CA Nitin Bhatia 1. Moreover, if the service provider provides one or more services from one or more premises, the exemption shall apply to the aggregate value of all such services. Services in respect of which SSP EXEMPTION IS NOT AVAILABLE i Service provided under brand name of another person: Exemption for small service provider is not available when service provided by a person under brand name or trade name, whether registered or not, of another person. As per the circular there are two types of scrutiny, namely a preliminary scrutiny and b detailed manual scrutiny. This important question until now not addressed and not answered clearly. Since the company is paying the total tax, does RCM applicability is correct? Services in respect of which SSP EXEMPTION IS NOT AVAILABLE i Service provided under brand name of another person: Exemption for small service provider is not available when service provided by a person under brand name or trade name, whether registered or not, of another person.

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Small Scale Service Tax Exemption up to 10 Lakhs notified

small service provider under service tax

However, this does not include payments received which are exempted from the whole of the service tax. Service tax is applicable to all services except some services which are specifically exempt. In that way, UPA government was better. Cafemutual has a copy of this letter. The Control over manpower is supplied is with Contractor.

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IFAs can avail service tax exemption under Small Service Provider: GOI

small service provider under service tax

Hence, the full vaule of service without abatement is required to be considered. While applying for S. However, CENVAT credit can be taken as per rules subject to fulfilment of the specified condition of being an input service. What is the amount of Exemption under small service provider exemption Notification? After that he has to pay service tax even his total income is less than Rs. What is the remedy? Or, can I temporarily surrender the registration and reclaim the same, whenever I feel that my billing would exceed 10 lacs.

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Who is Liable To Pay Service Tax ?

small service provider under service tax

The Central Government has issued Notification No. If in the next year 2015-16 his gross receipt from taxable services is 15 Lac, then we need look at preceding year. If he starts payment of service tax, he can avail Cenvat redit in respect of inputs or input services received after he starts payment of service tax. Is this what NDA Govt. Exemptions for small businesses cannot be applied to all products, and the benefits are limited.

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Small Service Provider(SSP)

small service provider under service tax

Please do answer these queries at the earliest…. If my total billing for this FY 2015-16 is below 10 lacs no service tax is payable. However, either by ignorance or by misreading or less reading, they may fail to collect taxes in some cases. Also AMC wise Income Certificate be provided for past 2 - 3 years to verify the genuineness of the exemption claimed. Person is not restricted to natural person. Viewers are advised to refrain from making defamatory allegations against individuals.

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Manual scrutiny of small service providers under Service Tax Laws

small service provider under service tax

If person is paying service tax on reverse charge mechanism, he cannot avail exemption for small service provider to avoid RCM. Now my query is for E. Duplicity will also be avoided if this is implemented, immediately. But, the small service provider has the option not to avail the exemption and pay service tax on the taxable value of service provided by him. Can Service Tax deptt.

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