CLUBBING OF SERVICES FOR CHECKING GST EXEMPTION LIMIT

[rajesh singal]

Hello Sir,

We are providing two types of one services i.e. one is providing tankers to Indian Oil Corporation for transportation of petrol/diesel. These tankers are provided for supply of product to our own petrol pumps. Although it is a taxable service under GTA but service tax is being deposited by IOC. So we do not do anything in this regard. Total amount of service provided is app. 28.00 lacs.

Secondly we have one Maruti Service Station and annual receipts are around 6.50 Lacs. Which is very well below the exemption limit.

Now query is whether both these services will be combined for looking into exemption limit.

Rajesh Singal

9417161882

[KASTURI SETHI]

Both are not to be clubbed. Relevant extract of Notification No.33/12-ST dated 20.6.12 is appended below:

3. For the purposes of determining aggregate value not exceeding ten lakh rupees, to avail exemption under this notification, in relation to taxable service provided by a goods transport agency, the payment received towards the gross amount charged by such goods transport agency under section 67 of the said Finance Act for which the person liable for paying service tax is as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules, 1994, shall not be taken into account.

[DR.MARIAPPAN GOVINDARAJAN]

Not required.

[Ganeshan Kalyani]

In my view, the GTA turnover would not be considered to include it with the taxable service of service station.

[rajesh singal]

Sir,

but Assessing officer is doing so, what should be done in this regard.

Rajesh Kumar Singal

[KASTURI SETHI]

You may receive a letter from the Department. You will not receive Show Cause Notice on the issue asked by you .Some other issues may be involved. It is your phobia on the issue. It is time to be silent and fearless. Notification is very much clear. All other experts are also of the same view. Nowadays Govt. is very strict regarding issuance of LAME SHow Cause Notice. Ask the officer to give in writing if the department is on right track on the present issue.

[rajesh singal]

Sir,

This case relates to financial year 2013-14 and department has given written show cause notice on first appearance itself. On this date only required documents were submitted.

Thanks

[DR.MARIAPPAN GOVINDARAJAN]

You may file reply contesting the issue.

[KASTURI SETHI]

If SCN has been issued, reply has to be filed. Three opportunities personal hearing will be accorded to you. The adjudication process will follow. It does not mean failure.

[Ganeshan Kalyani]

Reply must be filed to the notices.

[Ganeshan Kalyani]

An email is send asking some information. A call is also made to the assessee seeking information. Sending letters have diminished. Slowly things are moving to digitalisation. Computer laptops are now given to the staffs. Analysis are also carried out by the authority. Assesse cannot escape. Things are now transparent. Compliances are obline. No changes without on background. Trails are available with Information technology. Authorities are advanced.

AI Summary

Exclusion of recipient-paid service tax: GTA receipts not counted for exemption threshold; file reply if challenged. Amounts received for GTA services for which the recipient is liable to pay service tax are excluded from the aggregate value when determining entitlement to the small-value exemption; therefore GTA turnover where tax is paid by the recipient is not to be clubbed with receipts from other taxable services for assessing the exemption threshold, and if a show-cause notice is issued the assessee should file a reply and pursue adjudication and hearings.