CA. S. Balasubramanian (Chartered Accountant) (192 Points)
10 September 2011dear sir
an authorised service station earning a sales revenue of rs. 500000 during the current year. my friend told me that all the revenue from authorised service station is taxable and servie tax has to be paid no basic exempiton is available. is it correct
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 10 September 2011
As per my knowledge like other Service Providers basic exemption from service tax is also applicable to Authorised service stations. It's only when you cross the basic Threshold limit you become liable for payment of service tax. Please refer to point (G) in the link below:
https://www.servicetax.gov.in/st-profiles/service-stns-motors.htm
Hope this helps you.
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 10 September 2011
The case would be different if you are providing a service under any brand name, because in that case the exemption would not be available.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
