Service Tax Exemption to Small Service Providers

[KALPESH BHATT]

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

AI Summary

Small service provider threshold exempts services if aggregate in preceding year below limit; tax limited to excess in current year.
Service tax for a small service provider is determined by reference to the Small Service Provider Exemption: where the provider's aggregate taxable services in the preceding financial year did not exceed the statutory threshold, tax applies only to the excess in the current year, not the entire current-year receipts. A show-cause notice alleging suppression should be answered by citing the exemption's preceding-year test and using the SCN contact details to submit supporting records and rebuttal.