Meera Shanker (Student) (70 Points)
17 December 2016A small service provider (not regd for ST yet) in DTA provides services to a unit in SEZ. The value of the bills raised is exceeding Rs 10 lakhs in the current year.
1. Are the amounts billed to the SEZ to be included in calculating the treshold limit of Rs. 10lakhs?
2. What are the other points to be considered in this situation?
Please help me with the solutions at the earliest.
TIA
Nitin Bhuta
(Chartered Accountants)
(1253 Points)
Replied 19 December 2016
Though service provider is providing services which is below Rs.10 Lakhs but services provided to SEZ exceeds RS.10 Lakhs even though they are exempt from levy of service tax, one needs to register with service tax as soon as the value of invoices raised crosses 9 lakhs and levy service tax after Rs.10 Lakhs.
Services provided to SEZ are exempt from the levy of service tax which can be reported as exempt services by reporting exemption notification issued in the service tax return to be filed as well as same can be quoted on the invoices raised by your client.
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