service tax general exemption

[d.v. gupta]

sir,

our services are below 9 lacs during the year 2010-11. we wre paying service tax in year 2010-11. now we want to avail exemption for the year 2011-12. is it automatically or we have to file some information with service tax department. if information have to submit, than what is the last date to file the information.

[Alok Kumar]

Dear Mr. D.V.Gupta,

There is no such requirement prescribed in the relevant notification whereby the assessee has to give any kind of intimation or declaration to the department for availing the said small scale exemption ( to my understanding  also it is automatic ). However , you can intimate your intentions by submitting a simlpe letter to the department.

Please remember that this exemption will not be available in case you have paid service tax during the current F.Y. even ones.

Thanks,

 

Alok Kumar

AI Summary

Small-service-tax exemption applies automatically without formal filing, but is lost if service tax was paid this financial year. The small-service tax exemption functions as an automatic entitlement for assessees below the prescribed turnover threshold, with no statutory requirement to file a formal declaration; a voluntary simple written intimation to the department is permissible but not mandated. The exemption is disqualified if the assessee has paid service tax at any time during the relevant financial year.