*JaiNitH KuMaR* (*Aspire Then Inspire* !!) (217 Points)
26 August 2012Dear Members CCI,
In The computation of service tax we charge service tax on the value on which service tax is payable...
But sometimes before applying rate we deduct exemption for small service providers i.e. 1000000 from the total value of service..!!
So can u tell me when to deduct n when not to deduct 1000000 from the total value of service...??
Waiting for the earliest reply plzzzzzzzZZ...!!
Thanking you 
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 26 August 2012
in the 1st year of completion of providing taxable service over 10L we get exemption of 1st 10 L, but in subsequent years we are not eligible for any deduction and have to charge and pay service tax from zero level.
say in 2010-11 the total service is 12 lacs, and in previous year it was 7 lacs ( non taxable), so in 10-11 12-10=2 lacs is taxable, but in 11-12, the service tax get imposed from zero level and no deduction is available.
also when the service provider avails cenvat benefit, no such deduction is available, and the assesse has to pay service tax from very 1st day or zero level.
Sanjay
(Practice)
(41 Points)
Replied 26 August 2012
When Value of Service provided not exceeds the exemption limit (i. e. Rs 10,00,000) in the previous year, in that case you can deduct Rs 10 lac as exemption in the current year.
For Example, Total Service provided in 11-12 does not exceeds Rs 10 lac. And you have provided service valuing Rs 20 Lac in 12-13. Then you can deduct Rs 10 Lac in 12-13 as Exemption. Again in 13-14 You can't deduct Rs 10 Lac as in the Previous year Service provided by you is exceeds the exemption limit. Hence You have to pay Service tax Even Value of Service provided by you is Rs 1 in 13-14.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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