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.
Companies' Service Tax Exemption on Employee Services Debated; Notification No.33/2012-ST and Educational Guide Cited. A discussion on a forum addresses whether companies can claim a 10 lakh exemption on service tax for services like telephone charges, bus, and canteen facilities provided to employees. One participant confirms the exemption under Notification No.33/2012-ST, while another states that no threshold limit benefit applies as per the Service Tax Educational Guide. A separate query is raised about service tax obligations on rental income and registration timing. The consensus is that service tax is payable after crossing a 10 lakh exemption limit, and registration should occur after reaching 9 lakh in revenues. (AI Summary)
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