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

Taxable service basis for registration: exempt supplies excluded, register only if taxable-service threshold is exceeded. Registration for service tax depends solely on the value of taxable service; receipts from exempt services are excluded when computing the registration threshold, so a person supplying both exempt and taxable services must assess only the taxable-service value against the statutory registration limit.