TMI BlogService Tax Exemption to Small Service ProvidersX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear All, In FY 2014-15 Taxable value of service is less than ₹ 10 Lakhs and in FY 2015-16 it is ₹ 11.20 Lakhs. Hence in FY 2015-16 service tax is payable on ₹ 1.20 lakhs only. Is this correct? Can you please provide relevant Sections/Rules and Notifications in relation to above. I have received SCN stating that in F Y 2015-16 tax is payable on entire ₹ 11.20 Lakhs inste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad of ₹ 1.20 lakhs. Also can you please explain how to reply online in respect this matter. Thanking You, Kalpesh - Reply By KASTURI SETHI - The Reply = Sh.Kalpesh Bhatt Ji, Reply is as under :- 1. Service Tax is payable only on taxable value of ₹ 1.20 lakhs and NOT on the whole amount of ₹ 11.20 lakhs because you are entitled to threshold exemption limit of Rs. Ten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lakhs in the year 15-16 also. Go through relevant clause of Notification No.33/12-ST dated 20.6.12 which is as follows:- Provided that nothing contained in this notification shall apply to,- (viii) 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. The word, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'preceding' makes it crystal clear that you are entitled to small scale exemption of ₹ 10 lakhs in 15-16. There is not even an iota of doubt about this entitlement. 2. There must be email ID of the SCN issuance authority in the SCN (at the top of SCN). You can email reply to the SCN citing the above clause. The word, 'preceding' should be emphasized. I suggest that you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... must read the SCN word for word very carefully. In my view, the department cannot commit such mistake. Anyhow, if your query is correct, ST is payable only on taxable value of ₹ 1.20 lakh and not on the value of ₹ 11.20 Lakhs. - Reply By KALPESH BHATT - The Reply = Thank You So Much Sir. Kalpesh - Reply By KALPESH BHATT - The Reply = Hello Sir, In SCN they stated that Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of ₹ 10 Lakhs has been suppressed deliberately and therefore tax is payable on it. Can you guide on suitab;e reply? - Reply By Ganeshan Kalyani - The Reply = The use of certain words by authority is to invite you to the dept to provide clarity. If regular words are used then one may not pay that much heed to it and may take it lightly. So, not to get panic. - Service Tax Exemption to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Small Service Providers - Query Started By: - KALPESH BHATT Dated:- 5-1-2021 Service Tax - Got 4 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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