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Small scale exemption for gta

franklings (MD) (135 Points)

14 June 2016

. I am running GTA ( not owner of any vehicle . only by hiring) .From the total bill amount of GTA in a year , if i deduct first the abated amount and then deduct the fully exempted items amount , after that if the turnover amount comes below 10 lakhs ,can i avail small scale exemption of service tax ?

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CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 14 June 2016

Hello,

Many readers have the question whether abated value should be considered for small service provider exemption. While considering aggregate value for small service provider exemption limit, "consider value before abatement to calculate exemption"

Only value of services which is exempted from whole of the service tax should be deducted from taxable turnover.

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karan jit singh (Consultant) (1299 Points)
Replied 15 June 2016

Originally posted by : franklings
	. I am running GTA ( not owner of any vehicle . only by hiring) .From the total bill amount of GTA in a year , if i deduct first the abated amount and then deduct the fully exempted items amount , after that if the turnover amount comes below 10 lakhs ,can i avail small scale exemption of service tax ?

please redraft your query or elaborate more with example.

Regards

Karanjit Singh | +91-7503588224

franklings (MD) (135 Points)
Replied 16 June 2016

For example my turnover is 50 lakhs in a year . Around 40% of items are exempted form service tax( rice, pulses, milk, salt , foodgrains etc...) ie 20laks are exempted . In remaing 30 lakhs 70% is abated .ie 3000000 - 2000000 = 9 lakhs .Now my taxable service is 9 lakhs only. Can I get small scale exemption now ? Please clarify

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 16 June 2016

Sir,

AS I clarified it earlier for taking the SSI exemption, the services which are completly exempted are excluded, and the service swhich are under the abatement category are considered as full.

In you case the value of 30 lakhs would be considered as full without taking any abatement and hence no SSI exemptions shall be taken.