Service tax had been first levied at a rate of five per cent flat from 1 July 1994 till 13 May 2003, at the rate of eight percent flat w. Rohit has provided taxable services during financial year 2014-15 from its Noida branch of Rs. The Government of India can offer part or complete exemption by circulating an exemption notice. But I had achieved a turnover close to 5 lacs. Recently Mutual Fund distributors have been moved from reverse charge to forward charge for payment of service tax. The basic purpose behind exemption to small service provider was a welfare measure on the part of the Govt by providing relief to the small service provider from the burden of service tax collection and payment process.
Whether availing of benefit of exemption for first time 4. No, the board in its instruction through F. Hi, I am small service provider doing website business, i send invoice to clients including service tax but my turn over is less then 5 lakh, so should i pay service tax to govt which i have collected from clients?. The purpose of the preliminary scrutiny of returns is to ensure that complete and correct information has been furnished, and the taxes have been paid on time. I have entered the month-wise turnover amount under Gross Amount B 1. We can understand if from below table. The summarized chart of Notifications with their effective date and amount is given below -: Small Service Provider Tax exemption Limits Effective Date Amount Notification No.
If no, then we have to charge service tax 14% and submit it to govt. No, the board in its instruction through F. Am I exempted from paying Service Tax? Turnover exceeds 10 lacs in a year. No Exemption If Service are provided under brand name or trade name of others :The person providing service under the brand name or trade name of others. Service tax is a tax levied on the transaction of certain specified services by the Central Government under the Finance Act, 1994.
It is his submission that in order to avail ineligible exemption, respondent informed the lower authorities that there was partition of the properties, which was incorrect as there is no registered document of such partition. Earlier such exemption was available for only 7 selected services, but from 02-08-2008 in respect of all the services this exemption is available. The scrutiny may include checking the taxability of the service, the correctness of the value of taxable services, effective rate of tax after taking into account the admissibility of an exemption notification, abatement, or exports, if any etc. Second question: if i am exempted does the service tax liability fall on the Lessee since he has paid more than Rs. In such cases, service tax paid by an exporter on the above mentioned situations is refunded to the exporter. The board has further clarified that any show cause notice issued for non-filing of return whose annual turnover is far below the exempted limit may be disposed off accordingly. Thus in case the service provider is availing exemption owing to turnover being less than Rs 10 lakhs, he shall not be obliged to pay any tax.
Similarly abatement from gross amount charged by service provider has been defined in. This is a harsh step by the government which will not just increase the cost at the end of the assessee in terms of the legal consultancy, accounting expenditure, and liasoning expenses, but will lead to increased corruption. Sivakumar Tamil Nadu Sir, I am a Small Scale Service Provider with Turnover Rs. When the existing assessee starts providing a taxable service not mentioned in the registration certificate He should intimate the jurisdictional Central Excise officer in writing, furnishing the name of taxable service he starts providing. I believe there is a service tax exemption for service providers with turnover under Rs.
To Whom this exemption is available The exemption of small service provider is available to all type of person-The basic exemption is not restricted only to individual or partnership firm but it is available to all assesses. Dated: 18-7-2011 By:- The contention of Sh. Exemption Limit is Total Gross turnover or After abatement of figures? The gross amount comes out to be Rs 1000+876. But, On seeing our Advt. In order to submit a comment to this post, please write this code along with your comment: 3d94c943d37036cb70320138350a48cd. No matter tax amount is Rs.
Year 1, service rendered for Rs. If in the previous financial year aggregate value of taxable services provided was more than 10 lakh but this year aggregate value of taxable services provided is less than 10 lakh them you start paying service tax from rupee one. This being the case companies will comply with the tax laws. In terms of Notification No. Or should we raise one invoice per participant on the date of payment? In our view service tax can not be imposed on material part , so you can avail benefit of material part and net amount can be offered for service tax. What is the amount of Exemption under small service provider exemption Notification? For instance service provided by mutual fund agents have been exempted from service tax.
Such excess amount can be adjusted against the future tax liability. As far as I know it is 60% abatement. Scrutiny is one of the three prongs of compliance verification, the other two being audit and anti-evasion. Example: Person is providing services of renting motor vehicle designed to carry passengers. Service tax is a tax levied on the transaction of certain specified services by the Central Government under the Finance Act, 1994. Am i liable to pay service tax in following situation - my service turnover to company is 25 lakhs and to individual is 5 lakh am i laiable to pay service tax.
Then no need to pay service tax. . It can be seen from the above reproduced findings of the first appellate authority, the conclusion arrived at is very correct, as co-owners of the property cannot be considered as liable for a service tax jointly or severely sic as Revenue has took sic identify the service provider and the service recipient for imposing service tax liability, which in this case, we find our individual sic. These service providers would not be eligible to the exemption which is available to the small service providers. For instance service provided by mutual fund agents have been exempted from service tax. Your earliest reply will be highly appreciated Anonymous Sir, Iam Vijay running small unit of manufacturing various componenets.