Dear All,
In FY 2014-15 Taxable value of service is less than ₹ 10 Lakhs and in FY 2015-16 it is ₹ 11.20 Lakhs. Hence in FY 2015-16 service tax is payable on ₹ 1.20 lakhs only. Is this correct?
Can you please provide relevant Sections/Rules and Notifications in relation to above.
I have received SCN stating that in F Y 2015-16 tax is payable on entire ₹ 11.20 Lakhs instead of ₹ 1.20 lakhs.
Also can you please explain how to reply online in respect this matter.
Thanking You,
Kalpesh
Small Service Provider Exemption: Tax Only on Income Over 10 Lakhs as Per Notification No.33/12-ST A user inquired about service tax obligations for small service providers, questioning if tax should be paid on the entire 11.20 lakhs earned in FY 2015-16 or just the amount exceeding 10 lakhs. A respondent clarified that, based on Notification No.33/12-ST, tax is applicable only on the excess 1.20 lakhs due to the small service provider exemption. The user received a Show Cause Notice (SCN) claiming suppression of income and sought guidance on responding. Another participant advised not to panic, suggesting the authority's language aims to ensure compliance and prompt a response. (AI Summary)
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