04 February 2016
I have one query, please help me in this :
If an assessee had registration of Service Tax in past (2008) & had not claimed SSI benefit and charged Service tax on full value upto FY 2010 after that surrendered it, but now in 2016 he again (same assessee) want to apply for Service Tax Registration Certificate, now question raises can he claim SSI benefit in 2016-2017, is there any change in the situation if he had claimed SSI benefit in past so can he claimed it again after issuance of fresh registration certificate.
04 February 2016
An assessee can enjoy the threshold limit whenever he takes registration. As far as the Department is concerned with the surrender of ST-2 in 2010, the person ceased to be an assessee. Even though the STC number is PAN based the registration number will be different e.g the old STC number would have been AAAAA0000BST001 the current STC number would be AAAAA0000BSD002. Further the small service provider is exempt till he reaches the threshold limit. On crossing the threshold limit of Rs.10 lakhs he is liable to collect and pay service tax. In the first year he is liable to pay Service Tax on the excess over Rs.10 lakhs. From the subsequent financial year he is liable to pay Service Tax from the first invoice. Further suppose the assessees turnover in any year falls below Rs.10 lakhs. In the subsequent year he can by filing a declaration with the authorities not collect service tax and once again wait for the turnover to exceed Rs;10 lakhs.
05 February 2016
You can take the benefit in current year, even if you avoided it in previous year
The one and only eligibility for availing benefit is that you turnover in last year should be below 10 lakhs and this decision should be made at 1st April
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