TMI BlogPayment of Service tax exemption when taxable service turnover is less than 10 lakhsX X X X Extracts X X X X X X X X Extracts X X X X ..... Please clarify the payment of service tax when turnover of taxable services is less than 10 lakhs. - Reply By Rajagopalan Ranganathan - The Reply = Sir, If your turnover is less than ₹ 10 lakhs during previous financial year you liability is nil during current year vide Notification No. 33/2012-ST dated 20.6.2012. - Reply By RameshBabu Kari - The Reply = Namasthe Mr. Rajagopalan R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anganathan , Thank you very much for the reply given. I have found one article from business standard, which is as below: So, assuming the aggregate value of your or your firm's services is ₹ 11 lakh for 2014-15, you have to pay service since the threshold value of ₹ 10 lakh has been exceeded. If the value of services for 2015-16 crosses Rs eight lakh, you still have to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay service tax, since the aggregate value of service is calculated on the previous year. Then if in 2016-17, the aggregate value of service comes to Rs seven lakh, then you have the option of not paying service tax, because in the previous year (2015-16), the threshold was less than ₹ 10 lakh (Rs 8 lakh in this case). But if in 2016-17, the aggregate value of service exceeds ₹ 10 lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , then you will have to pay service tax. - Reply By KASTURI SETHI - The Reply = Dear Querist, First of all forget brand name. Here we are talking about unbranded service being provided. Suppose your aggregate turnover of all taxable services remained ₹ 11 lakhs in the year 2014-15, you paid Service Tax on value of Rs.one lakh only. In 2015-16 you were not eligible for small scale e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption. ST had to be paid from the very start in 2015-16. In case your aggregate turn over remained ₹ 9,99,999/- (i.e. below ten lakhs) in the year 2015-16, you were again entitled to exemption of ₹ 10 lakhs in 2016-17 but Service Tax registration will be kept inasmuch as for condition for registration turnover is ₹ 9 lakhs in a financial year. Pl. note the words, any finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial year in first para of Notification No.33/12-ST and in the preceding ye ar in para no. 2(vii). Also the definition of turnover has to be considered while arriving at threshold exemption limit. - Reply By Himansu Sha - The Reply = In the previous year if the turnover from one or more premises or services is less than 10 lakh, then exemption is eligible in the current year. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f in one year it crosses 10 lakh, then in the succeeding year exemption from paying tax will not be applicable. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Mr. Kasturi Sethi has clarified you query. I endorse the same. I have not come across any branded service or unbranded service in service tax field. In my opinion what ever may be the nature of the service provided, if the turno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver is less than 10 lakhs during previous financial year you need not pay any service tax during the current year. - Reply By KASTURI SETHI - The Reply = Circular No. 202/12/2016-S.T., dated 9-11-2016. S.No.35 . Most of the online services are branded services. Whether small scale exemption would be available to the said service providers? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Small scale exemption is not applicable to taxable services provided by a person under a brand name or trade name, whether registered or not, of another person. [ notification No. 33/2012-ST refers] [Brand name or trade name has been defined in the said notification to mean a brand name or a trade name, whether registered or not, that is to say, a name or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mark, such as an invented word or writing, or a symbol, monogram, logo, label, signature, which is used for the purpose of indicating, or so as to indicate a connection, in the course of trade, between a service and some person using the name or mark with or without any indication of the identity of that person.] - Reply By KASTURI SETHI - The Reply = 2015 (40) S.T.R. 336 (Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . - Del.) = 2015 (9) TMI 310 - CESTAT ALLAHABAD ISHWAR CONSULTANT Versus COMMISSIONER OF CENTRAL EXCISE, KANPUR - Reply By Ganeshan Kalyani - The Reply = I agree with the views of the expert collegue. In order to avail small scale exemption you will have to maintain proper accounts to substantiate your stand in case of audit. In the year in which service tax is not paid, service tax NI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L is anyway need to be filed. - Reply By Himansu Sha - The Reply = The branded service is not eligible for small scale exemption. For example if somebody provides coaching in the brand name of fiitjee,akash etc. They will not get the exemption - Payment of Service tax exemption when taxable service turnover is less than 10 lakhs - Query Started By: - RameshBabu Kari Dated:- 12-4-2017 Service T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax - Got 9 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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