09 November 2011
Dear Friends, I am in a need of clarification with respect to applicability of 6/2005 (Small service provider exemption) to catering service.
Clarrification required with respect to wheather the limit is to be calculated after abatement or before abatement (1/2006) ie 50%.
As per my reading if a catering service provider whose gross receipts is above rs.20 lakhs and more need to pay service tax. (20L x50%)=taxable value of service ie 10 lakhs.
14 November 2011
Minimum exemption limit of rs. 10 lac under NN 6/2005 shall calculated before allowing exemption under NN 1/2006. In ur case you have crossed minimum exemption limit of rs. 10 lac accordingly you have to pay tax on rs 10 lac and after abatement it will be rs 5 lac.
CAclubindia
