Exemption limit of service tax

[Narhar Nimkar]

Clarification is required on the following issue -

Companies are required to pay service tax on Recovery of Telephone charges, Bus facility provided, canteen facility provided to their employees. Since this is coming under the category of Provision of service, can the Company claim exemption of ₹ 10 lacs for this payment.

[PAWAN KUMAR]

Dear Sir,

Yes, exemption under SSI under Notification No.33/2012-ST dated 20.06.2012 can be claimed subject to fulfillment of condition prescribed therein.

[Narhar Nimkar]

Thanks a lot for prompt reply.

[YAGAY and SUN]

Dear Narhar,

No as per the Service Tax Educational Guide no threshold limit benefit would be available to the person liable to pay the Service tax.

This is for your kind information.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

We have given our commercial office space for rent in March 2015 but registered for STT in July 2015 due to some confusions.Do we need to pay ST from March or only from the day of registration? Some one also told us that we need to pay/register ST only after rent crosses 9L is there any exemption.

[Narhar Nimkar]

Yagay & Sun

If this limit is not available to the service provider then to who is eligible to claim this limit.??

[KASTURI SETHI]

Service Tax is to be paid after crossing exemption limit of ₹ 10 lakhs and after crossing 9 lakhs apply for registration as per Service Tax law in force at present.

AI Summary

Service tax exemption threshold may not apply to persons liable to tax, affecting employee-charge recoveries and registration obligations.
Companies recovering charges for employee services face conflicting guidance: some responses advise the small-service-provider exemption may be claimed if its conditions are satisfied, while others state the threshold benefit is not available to a person liable to pay service tax. Separately, registration obligations may arise at a lower turnover threshold than the exemption ceiling, requiring providers to assess both exemption eligibility and registration/payment timing.