11 - Small Service Providers - Value Based Exemption up to 10 lakhs

Exemption under this notification will be available after aggregating value of all taxable services from all such premises i.e. exemption is available on totality basis and not for singly premises or services. As per notification , where a taxable service provider provides one or more taxable services from one or more premises, the exemption under this notification shall apply to the aggregate value of all such taxable services and from all such premises and not separately for each premises or each services.

Same as above while calculating eligibility limit of ₹ 10 lacs previous year turnover for exemption, all premises turnover will be aggregate to calculate eligibility. As per notification, the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.

In the case of Co-owners , exemption will be available to both the owners separately. In the case of Dinesh K. Patwa, [2012 (10) TMI 67 - CESTAT AHMEDABAD] it was held that if the cheques for rent are received individually by all the appellants, it was indicated in the agreement between the individuals for the purpose of renting out of premises to another person so as to make it specific that individually they are renting out the property to a person. On perusal of the said notification, we find that the said notification talks about the aggregate value of the taxable services rendered, should be considered for the purpose of exemption and in this case if individually all the appellants be considered as provider of such service, their aggregate value does not exceed the threshold limit. 

Aggregate value rule: combined turnover across services and premises determines small service provider exemption; co-owners assessed individually. Exemption is applied to the aggregate value of all taxable services provided from all premises by a provider, and eligibility is determined by aggregating previous year turnover across all premises; where premises are co-owned, each co-owner may claim the exemption separately if, on individual assessment, their aggregate taxable services fall within the threshold.