Hi All,
One of my client had registered for service tax in July 2013. Till september 2013, he had not charged service tax as he wanted to take benefit of Notification 33/2012 (Small service provider exemption). His gross billing till then was Rs.5 lakhs.
Then, from october onwards, he started charging service tax as he thought limit was Rs.5 lakhs.
Now question is:
1. Can he claim exemption partially? i.e. not pay service tax on first Rs.5 lakhs.
2. His clients (to whom he charged service tax after october) have already taken CENVAT credit of the same and not ready to refund service tax amount? So, can he pay service tax and in ST3, claim exemption and show service tax paid as excess collected?
Thanks in advance. :)