Service Tax

[Sanjeev Chauhan]

Respected All,

 

Kindly guide , if a manufacturer of excisable goods  is receiving rent income less than 10 lakhs from one of his immovable property , whether he is liable to pay service tax on such rent income or not liable to pay s.t. because the rent income is less than 10 lacs.

 

Basically my question is that if a manufacturer of excisable goods is providing any taxable service but income from such service is less than Rs.10 lacs, is he liable to pay service tax?

 

Your valuable guidance will be of great help. Thanking you in anticipation.

 

Regards,

Sanjeev Chauhan.

[MANDAVILLI RAMAKRISHNA]

your view is correct. when a person is providing taxable services and not received more than Rs. 10 lacs per annum is not liable to pay service tax thereon except in the case of Reverse charge mechanism.

[Shyam .]

Hi, 

There is no correlation between SSP and mfr'r. you can claim SSP expemtion. 

Thanks,

shyam

[MANDAVILLI RAMAKRISHNA]

both acts are different. a dealer under central excise need not be a taxable service provider

AI Summary

Manufacturers with rental income under Rs. 10 lakhs not liable for service tax unless under reverse charge mechanism. A manufacturer of excisable goods inquired whether they are liable to pay service tax on rental income below Rs. 10 lakhs. Respondents clarified that if the income from taxable services does not exceed Rs. 10 lakhs annually, the manufacturer is not liable to pay service tax, except under the reverse charge mechanism. It was also noted that there is no direct correlation between small service provider (SSP) exemption and manufacturing, and the two acts governing excise and service tax are distinct.