Service Tax Exemption on Service Turnover of Rs.
10 Lakhs per Year
[Service Tax Notification No. 33 dated 20th
June 2012]
In exercise of the powers conferred by
sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994)
(hereinafter referred to as the said Finance Act), and in supersession of the Government of
India in the Ministry of Finance (Department of Revenue) notification No. 6/2005-Service Tax, dated the 1st March,
2005, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R. number 140(E), dated the 1st March, 2005,
except as respects things done or omitted to be done before such supersession,
the Central Government, being satisfied that it is necessary in the public
interest so to do, hereby exempts
taxable services of aggregate value not exceeding ten lakh rupees in any financial
year from the whole of the service tax leviable
thereon under section 66B of the said Finance Act:
Provided that nothing contained in this
notification shall apply to,-
(i) taxable services provided by a person under a brand name or
trade name, whether registered or not, of another person; or
(ii) such value of taxable services in respect of which service
tax shall be paid by such person and in such manner as specified under
sub-section (2) of section 68 of the said Finance Act read with Service Tax
Rules,1994.
2. The
exemption contained in this notification shall apply subject to the following conditions,
namely:-
(i) the
provider of taxable service has the option not to avail the exemption contained
in this notification and pay service tax on the taxable services provided by
him and such option, once exercised in a financial year, shall not be withdrawn
during the remaining part of such financial year;
(ii) the
provider of taxable service shall not avail the CENVAT credit of service tax
paid on any input services, under rule 3 or rule 13 of the CENVAT Credit Rules,
2004 (herein after referred to as the said rules), used for providing the said
taxable service, for which exemption from payment of service tax under this
notification is availed of;
(iii) the
provider of taxable service shall not avail the CENVAT credit under rule 3 of
the said rules, on capital goods received, during the period in which the
service provider avails exemption from payment of service tax under this
notification;
(iv) the
provider of taxable service shall avail the CENVAT credit only on such inputs
or input services received, on or after the date on which the service provider
starts paying service tax, and used for the provision of taxable services for which service tax is
payable;
(v) the
provider of taxable service who starts availing exemption under this
notification shall be required to pay an amount equivalent to the CENVAT credit
taken by him, if any, in respect of such inputs lying in stock or in process on
the date on which the provider of taxable service starts availing exemption
under this notification;
(vi) the
balance of CENVAT credit lying unutilised in the
account of the taxable service provider after deducting the amount referred to
in sub-paragraph (v), if any, shall not be utilised
in terms of provision under sub-rule (4) of rule 3 of the said rules and shall
lapse on the day such service provider starts availing the exemption under this
notification;
(vii) where
a taxable service provider provides one or more taxable services from one or
more premises, the exemption under this notification shall apply to the
aggregate value of all such taxable services and from all such premises and not
separately for each premises or each services; and
(viii) the aggregate value of taxable services rendered by a
provider of taxable service from one or more premises, does not exceed ten lakh
rupees in the preceding financial year.
3. For
the purposes of determining aggregate value not exceeding ten lakh rupees, to
avail exemption under this notification, in relation to taxable service
provided by a goods transport agency, the payment received towards the gross
amount charged by such goods transport agency under section 67 of the said
Finance Act for which the person liable for
paying service tax is as specified under sub-section (2) of section 68
of the said Finance Act read with Service Tax Rules, 1994, shall not be taken
into account.
Explanation.- For
the purposes of this notification,-
(A) “brand
name” or “trade name” means a brand name or a trade name, whether registered or
not, that is to say, a name or a mark, such as symbol, monogram, logo, label,
signature, or invented word or writing which is used in relation to such
specified services for the purpose of indicating, or so as to indicate a
connection in the course of trade between such specified services and some
person using such name or mark with or without any indication of the identity
of that person;
(B) “aggregate
value” means the sum total of value of taxable services charged in the first
consecutive invoices issued during a financial year but does not include value
charged in invoices issued towards such services which are exempt from whole of
service tax leviable thereon under section 66B of the
said Finance Act under any other notification.”
4. This
notification shall come into force on the 1st day of July, 2012.
[F.No. 334 /01/2012- TRU]