Exemption to Small service providers;Notification No. 33/2012 - Service Tax, dt: 20th June,2012

1. In exercise of the powers conferred by Section 93(1) of section 93 of the Finance Act, 1994.

2. And in supersession of notification No. 6/2005-Service Tax, dated the 1^st March, 2005, except as respects things done or omitted to be done before such supersession.

3. This notification shall come into force on the 1st day of July, 2012

Exempts taxable services of aggregate value not exceeding ten lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66B of the said Finance Act:        

A. However this exemption is not applicable to the following:

 (i) taxable services provided by a person under a brand name or trade name, whether registered or not, of another person ( eg: Authorized service centers); or

(ii) such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under Section 68(2) Finance Act, 1994, read with Service Tax Rules,1994.
(Please refer post dated  June 27  Titled Notification No. 30/2012-Service Tax dt 20th June 2012 U/s 68(2))

B. The exemption contained in this notification shall apply subject to the following :

(i) the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him. Such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;

(ii) the provider of taxable service shall not avail the CENVAT credit of service tax paid on any input services, under rule 3 or rule 13 of the CENVAT Credit Rules, 2004, used for providing the said taxable service, for which exemption from payment of service tax under this notification is availed of; 

(iii)the provider of taxable service shall not avail the CENVAT credit under rule 3 of the said rules, on capital goods received, during the period in which the service provider avails exemption from payment of service tax under this notification;

(iv) the provider of taxable service shall avail the CENVAT credit only on such inputs or input services received, on or after the date on which the service provider starts paying service tax, and used for the provision of  taxable services for which service tax is payable;

(v) the provider of taxable service who starts availing exemption under this notification shall be required to pay an amount equivalent to the CENVAT credit taken by him, if any, in respect of such inputs lying in stock or in process on the date on which the provider of taxable service starts availing exemption under this notification;

(vi) the balance of CENVAT credit lying unutilised in the account of the taxable service provider after deducting the amount referred to in sub-paragraph (v), if any, shall not be utilised in terms of provision under sub-rule (4) of rule 3 of the said rules and shall lapse on the day such service provider starts availing the exemption under this notification;   

(vii) 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; and

(viii) 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.

C. For the purposes of determining aggregate value not exceeding ten lakh rupees,

In relation to taxable service provided by a goods transport agency, the payment received towards the gross amount charged by such goods transport agency under section 67, the person liable for  paying service tax is as specified under Section 68(2) with Service Tax Rules, 1994, shall not be taken into account.

D .Explanation.- For the purposes of this notification,-

(A) “brand name” or “trade name” means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person;

(B) “aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but

does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66.