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

Service tax threshold limits liability for taxable services where receipts are below the threshold, except under reverse charge.
Liability for service tax on rent or other taxable services for a manufacturer depends on the turnover based threshold exemption: providers with gross receipts below the prescribed threshold are not liable to pay service tax on those services, except where the reverse charge mechanism applies; central excise dealer status is distinct from service tax registration and manufacturers may claim available small service provider exemptions.