REGISTRATION UNDER SERVICE TAX

[Sanjeev Agrawal]

AN ASSESSEE WAS PROVIDING WORKS CONTRACT SERVICE TO GOVT DEPARTMENTS (For F/Y 2015-16 & 2016-17) WHICH WERE EXEMPTED IN SERVICE TAX via Mega Exemption,, AT THE SAME TIME HE RENTED HIS IMMOVABLE PROPERTY TO AN ENTITY AND RECEIVED ₹ 280000.00 p.a . AMOUNT OF BILL RAISED TO GOVT DEPTT. WERE IN CRORES FOR BOTH THE FINANCIAL YEAR BUT THE VALUE OF TAXABLE SERVICE WAS BELOW 10 LAKHS Whether he was liable to get registered under service tax.

AI Summary

Service Tax Registration Not Required for Exempt Government Works and Low Taxable Service Value Below 9 Lakhs An individual provided works contract services to government departments, which were exempt from service tax for the financial years 2015-16 and 2016-17, and also rented immovable property, earning 280,000 annually. Despite raising bills in crores for government services, the taxable service value was below 10 lakhs. The query was whether registration under service tax was necessary. It was clarified that the registration threshold was 9 lakhs for taxable services only, excluding exempt services. Notifications relevant to service tax registration and small-scale service provider limits were referenced to support this clarification.