Exemption in service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2009 I am registered for one of the service in financial year 08-09 and i had paid service tax for it, but their are few more services for which i am not registered but have receivables in those services and have not paid any services tax for them neither have i collected it, total of my all taxable services is less than Rs10.00 lac , so am i liable to pay service tax for those other services or not.Also if i am liable to pay service tax for them, what can I do now since i have already filed return for the year(it has been more than 60 days).

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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01 January 2010 If a service provider is having a service provision of less than 10 L in the pr yr then he is eleigible for the exemption upto Rs. 10 lakhs of unbranded service.
Once the choice of payment is made in a year even though less than 10 L all services.

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2010 Thanks, but what about the services for which we are not registered, and if we have to pay service tax for them, then what is the procedure now to amend the mistake(it has been more than 90 days since filling of return).
Our taxable services for year 07-08 is around 4.00 lac

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Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2010 Dear Sir, I am still waiting for reply.

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2010 Still waiting for reply

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2010 Mr.Madhukar kindly reply to the query if possible.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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21 July 2024 In the financial year 2008-09, if your aggregate turnover from taxable services was less than Rs. 10 lakhs, you would have been eligible for the Small Service Provider (SSP) exemption under the service tax rules applicable at that time. Here’s how it applies to your situation:

1. **Small Service Provider Exemption**: As per the SSP exemption, if your total turnover from taxable services (all services combined) in a financial year did not exceed Rs. 10 lakhs, you were not required to pay service tax on any of those services. This exemption applied irrespective of whether you were registered for all services or not.

2. **Services Not Registered**: If there were other services for which you were not registered and you have receivables but did not collect or pay service tax on them, the exemption under SSP still applies as long as your total turnover from all taxable services is within the exempted limit (Rs. 10 lakhs).

3. **Procedure After Filing Return**: Since it has been more than 60 days since you filed the return for the financial year 2008-09, any amendments or rectifications would typically not be allowed under normal circumstances as per the Service Tax rules. However, given that it has been more than 90 days, the options for correction might be limited.

4. **Retrospective Payment**: If there is a determination that service tax should have been paid on services for which you were not registered, and if your total taxable turnover exceeds Rs. 10 lakhs when including these unregistered services, technically you would be liable to pay service tax. In such cases, penalties and interest may apply as per the applicable provisions.

5. **Consultation with Tax Professional**: It is advisable to consult with a tax professional or a chartered accountant who is well-versed with service tax regulations. They can review your specific case, assess the impact of not registering for certain services, and provide guidance on any corrective measures that may still be possible under the current tax laws.

6. **Documentation and Records**: Ensure you maintain proper documentation and records related to your service tax filings and transactions for future reference and audit purposes.

Given the complexities and potential implications, professional advice is crucial to ensure compliance and to address any retrospective tax liabilities effectively.