St 3 and gross receipt below 10 lakhs

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2017 A got registered with service tax in 2013-14 as his gross receits touched Rs 9 lakhs. He paid service tax and filed his ST3 returns. In 2015-16 his gross was below 10 lakhs and he did not charge service tax, did not issue any service tax invoice, He had some export income, but below 10 lakhs and filed a nil return (ST3),showing only export income.
In 2016-17 he had some export income, and also some domestic income, but again below 10 lakhs. He did not issue any service tax invoice, nor deposited any service tax . Now is he required to show his domestic income in ST 3 and if so, where will he show, and under what clause he can show exemption from service tax. Kindly advise.

CA CS Jainam Shah

CA CS Jainam Shah (Expert)
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12 April 2017 You are required to charge service tax from one rupee earned after basic exemption limit of Rs. 10 lacs has been crossed.

Basic exemption limit of Rs. 10 lacs is not year-wise limit. It is a once in a lifetime exemption limit.

Hence, once you have crosses limit of 10 lacs in 2013-14. You are required to charge service tax from 1 rupee from the next financial year onwards.

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2017 As per notification 8/2008 service provider has the option not to charge/ pay service tax if his gross receipts are below 10 lakhs in current year as well as in previous financial year. A did not have gross receipts exceeding 10 lakhs in 2016-17 (current year) and also in 2015-16(previous financial year). Hence he did not charge service tax in any of these years. In view of this please advise how should his gross receipts in ST3. The column containing information re claim of exemptions provides selection of notifications only from 2012, and earlier notification of 2008 can not be selected.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2017 Please see notification 33/2012