The assessee is rendering export of services and also some local services. But value of Taxable domestic services does not exceeds Rs.10 lacs in the financial year 2009-10.
In the financial year 2010-11, his taxable domestic services valued Rs.12 lakhs. He is eligible Small Service Provider and paid service tax for value which exceeds Rs.10 lakhs.
In the financial year 2011-12, his taxable domestic services valued Rs.8 lakhs. He is not eligible for Small Service Provider in the f.y.2011-12 as the taxable service in the f.y.2010-11 exceeds Rs.10 lakhs and so he paid Service Tax for total value of services of Rs.8 lakhs.
Subsequently in the financial year 2012-13, again his taxable domestic sales will be Rs.7 lacs. Whether he is chargeable to Service Tax for the full value of Rs.7 lakhs or he can claim exemption as Small Service Provider?
Because Definition of Small Service Provider says, "Small Service Provider means a service provider the aggregate value of taxable services rendered by whom from one or more premises, does not exceeds Rs.10 lakhs in the preceding financial year".
Here in this case, for financial year 2012-13, preceding financial year is 2011-12 and taxable domestic services rendered does not exceed Rs.10 lakhs. As per the definition, whether he is eligible Small Service Provider in the f.y.2012-13 and claim exemption ? or Once the threshold limit exceeds in any of the financial year, whether the assessee lost his option as Small Service Provider ?
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