Small service provider - Exemption

[Asked by Guest]

Small service providers are exempt from service tax under notification no.33 / 2012 upto a aggregate turnover of Rs. 10L during a financial year. Now my question is in case if the turnover in financial year 2009 - 10 is 12L, financial year 2010 - 11  is Rs.7L, financial year 2011 - 12 is Rs.15L and financial year 2012 - 13 is Rs.5L.  whether once service provided in financial year 2009 - 10 is more than Rs.10L limit then will it be required to charge service tax for all the next years even though the service provided in next years is less than Rs.10L

AI Summary

Small service provider exemption hinges on preceding year's turnover, determining service tax applicability in subsequent years.
Exemption for small service providers requires that the aggregate value of taxable services from one or more premises does not exceed the threshold in the preceding financial year; eligibility in any year is determined by the immediately prior year's aggregate. Applying this test to the example, a year with receipts above the threshold removes exemption for the next year, while a year below the threshold restores exemption for the subsequent year, with tax charged on amounts exceeding the threshold in years where exemption applies.