Small service provider exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2012 my client has gross receipt above 10 lacs for last some years.

but for the f.y. 2011-12 he has only receipt 5 lacs, can he claim Small service provider exemption for the f.y. 2012-13

and my client also wants to surrender his service tax registration bcz

he claim that he will not earn gross receipt above exemption limit in futures (i.e. above 10 lac)

please help

Hari Beldona

Hari Beldona (Expert)
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16 April 2012 Once he crosses Rs 10 lacs your client is liable to pay service tax . He has to continue to charge service tax irrespective of receipts. Service tax exemption is one time exemption.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 April 2012 If you have reason to believe that the amount of taxable service will not exceed the basic limit from current year onwards then it is better to surrender the certificate granted for registration.
once the certificate is surrendered, there will be no service tax liability.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 April 2012 In F.Y 2012-13 the client can enjoy the benefit of SSP.
The client can surrender ST-2 using the online facility ,available in www.aces.gov.in, after updating the filing of ST-3.

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