an individual started providing taxable service of 11 lacs under manpower supply to a company during FY 2014-15, Whether he can claim exemption of Small scale service provider 10 lacs and pay service tax on the remaining portion of 1 lac @ 25%? partial reverse charge 25% individual & 75% service receiver scheme?
7 Replies
JAINS
(CFO)
(23 Points)
Replied 15 October 2015
Dear Nihad , Once we cross threshold limit of exemption in service tax , liability is on full value -means 11 lacs in above query .
Aniruddha Prakashkar
(Service Tax Practitioner)
(84 Points)
Replied 15 October 2015
The manpower supply service is brought under budget 2015. Please cross check once.
nihad
(2)
(28 Points)
Replied 15 October 2015
in the initial year of providing service there will be 10 lac exemption know for small scale?
RAHULSMITTAL
(Partner, V Mittal & Co)
(252 Points)
Replied 15 October 2015
Yes for intial year this limit is available, even if in next year total receipt is less than 10 lakhs, in the following year this limit is available again
Neha Chhapolia
(Chartered Accountant)
(36 Points)
Replied 15 October 2015
In the the first year of commencement of your business, you will eligible for exemption of Rs. 10 lac. Refer Notification no. 33/2012 dated 20.06.2012.
From 01.04.2015, whole liability of service tax is on service receiver in case of providing of service by individual, firm or AOP.
RAHULSMITTAL
(Partner, V Mittal & Co)
(252 Points)
Replied 15 October 2015
Neha ji,
Can you please elaborate your reply in 2nd part whole liability on service receiver plz. As i need more clarity on that
Saket Agarwal
(Chartered Accountant)
(274 Points)
Replied 20 November 2015
As far as I know.. Small scale exemption is not available to service recipient for his liability under reverse charge. Service provider will be eligible to claim exemption under small scale exemption (provided the value of taxable services provided in the preceeding year was less than Rs. 10 Lakhs)
Also presently there is 100% reverse charge on manpower services
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