SSI Exemption under Service Tax N/N 33/2012

[Chandan Garg]

Can a service provider (Pvt Ltd Co.) claim ssi exemption of Rs Ten Lakhs in respect of services provided by it when it is already paying service tax under RCM on GTA?

AI Summary

Company Ineligible for SSI Exemption on RCM Services; Can Claim for Other Services if Criteria Met A private limited company inquires about claiming the Small Scale Industries (SSI) exemption of 10 lakhs for services provided while already paying service tax under the Reverse Charge Mechanism (RCM) for Goods Transport Agency (GTA) services. It is clarified that SSI exemption is not available for services under RCM, but can be claimed for other output services if previous or current financial year service value does not exceed 10 lakhs, with a declaration required. The company, involved in trading and receiving commission under a consignment contract, seeks advice on service classification, registration amendment, and tax return requirements. It is advised that the service is business auxiliary, and SSI benefits can be availed with necessary registration amendments and return disclosures.