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.

[KASTURI SETHI]

Sh.Sanjeev Agrawal Ji,

Threshold limit for the purpose of registration was 9 lakhs. It was value of TAXABLE SERVICE only. The value of exempted services was not to be included for the purpose of registration as well as threshold exemption of Rs.ten lakhs. Emphasis is again laid on taxable service. Go through the following notifications :-

Service tax registration - Person or class of persons specified for the purpose of Section 69(2)

[Notification No. 26/2005-S.T., dated 7-6-2005].

Small Scale Service Provider - Limit for registration increased to ₹ 9 lakhs from 1-4-2008

[Notification No. 9/2008-S.T., dated 1-3-2008]

Also see Notification No.33/12-ST dated 20.6.12 as amended.

[Ganeshan Kalyani]

Sir, you have cleared the doubt. It is clear that the provision says taxable service.

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.