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How the exemption under this notification will be calculated if the service provider has more than one premises or providing more than one service? What treatment will be done in this case while calculating previous year turnover? What if there are co-owners, exemption will be available to both the owners or not?

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Dated: 1-4-2015

11 - Small Service Providers - Value Based Exemption up to 10 lakhs

Exemption under this notification will be available after aggregating value of all taxable services from all such premises i.e. exemption is available on totality basis and not for singly premises or services. As per notification , where a taxable service provider provides one or more taxable services from one or more premises, the exemption under this notification shall apply to the aggregate value of all such taxable services and from all such premises and not separately for each premises or each services.

Same as above while calculating eligibility limit of ₹ 10 lacs previous year turnover for exemption, all premises turnover will be aggregate to calculate eligibility. As per notification, the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.

In the case of Co-owners , exemption will be available to both the owners separately. In the case of Dinesh K. Patwa, [2012 (10) TMI 67 - CESTAT AHMEDABAD] it was held that if the cheques for rent are received individually by all the appellants, it was indicated in the agreement between the individuals for the purpose of renting out of premises to another person so as to make it specific that individually they are renting out the property to a person. On perusal of the said notification, we find that the said notification talks about the aggregate value of the taxable services rendered, should be considered for the purpose of exemption and in this case if individually all the appellants be considered as provider of such service, their aggregate value does not exceed the threshold limit. 


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