Dear Sir, With respect to Small Service Provider Exemption, my client is paying excise duty on the

[Chalapathy Rao Marthy]

Dear Sir, With respect to Small Service Provider Exemption, my client is paying excise duty on the goods manufactured by them. Recently they have let a part of thier unutilised Land to another entity. Are they liable to Service Tax. The revenue from renting does not cross Rs 9 Lakhs. They also pay ST on GTA.

[Surender Gupta]

Since the land is incidental to use of building, the same is liable to service tax. However, you can avail exemption upto Rs. 10 lakhs as per notification no. 6/2005. Payment of service tax on GTA service does not debar availing exemption upto Rs. 10 lakhs.

AI Summary

Small service provider exemption: incidental land rentals may be exempt if aggregate taxable receipts remain below the exemption threshold.
Renting part of unutilised land that is incidental to use of a building is taxable as a service, but the Small Service Provider exemption under the applicable notification exempts aggregate taxable receipts up to the specified threshold; payment of service tax on other services (such as GTA) does not bar claiming that exemption.