Registration query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2014 hi frnds,

in service tax there is an exemption of 10lakhs from registration of service tax as ssp exemption.

i was wondering that if suppose my turnover exceeds rs 10 lakhs and i dont register nor do i pay St how will anyone come to know that??

CA Kedar Sakhardande

CA Kedar Sakhardande

(Expert)
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21 June 2014 when the service tax turnover likely to exceed Rs. 9.00 lacs go for service tax registration (its a process of 4-5 days)

In the first year , you get a service tax exemption of Rs. 9.00 Lacs

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2014 kindly nswer my question

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2025 Hey! Good question about the service tax exemption and registration.

Here’s the scoop:

1. Service Tax Registration Threshold
Under service tax rules (before GST), if your aggregate turnover exceeds Rs. 10 lakhs, you are mandatorily required to register and pay service tax.
This limit is called the threshold exemption limit.
2. What if You Don’t Register or Pay Service Tax?
The tax authorities have various ways to detect unregistered or non-compliant service providers:
TDS (Tax Deducted at Source) Records: Clients deduct TDS on payments to service providers and report it to the government. If you are not registered, a mismatch arises.
Audits and Inspections: Departmental audits, scrutiny, and inspections may uncover non-registration.
Returns Filed by Other Parties: Your clients or vendors file their returns mentioning payments to you; discrepancies can flag your non-compliance.
Complaints and Whistleblowers: Sometimes, competitors or customers may report non-compliance.
3. Consequences of Non-Registration
Penalties and interest on unpaid service tax.
Legal action by tax authorities.
Denial of input tax credit to your clients.
Summary
Scenario Outcome
Turnover Rs.10 lakhs Must register and pay service tax
Non-registration with turnover > 10 lakhs Detection possible via TDS, audits; penalties applicable
So, while it might seem that no one will know, the government has robust mechanisms to detect non-registration and non-payment.

Better to comply early to avoid trouble later!

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