Service Tax

This query is : Resolved

Ashish Jain (Querist)
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01 June 2016 Expert's, One of my clients is involved in Sale of Goods as well as he provides services.He has TIN number but not Service Tax number.His transactions in Service Tax is below 10L per annum.Now the issue is that one of his customers is asking him for service tax bill with service tax amount in it.Can I issue him a service tax invoice & I would also like to know that do I require to get a Service Tax number in this case.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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01 June 2016 You need to take a service tax registration if you require to issue a service tax bill.

Rupesh Jain

Rupesh Jain (Expert)
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01 June 2016 if below 10 lacs then not required service tax registration.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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01 June 2016 It is true that no service tax registration is required for taxable value of services below 10 lacs. However in case you require to charge service tax on the bills if your clients so insist and other commercial considerations, it is permissible only after taking registration and thereby collecting and depositing service tax against the STC no. so received.

Ashish Jain

Ashish Jain (Querist)
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02 June 2016 Yes Vishakha One of their customers is demanding a Service Tax invoice.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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24 July 2025 Service Tax Registration Requirement (as of 2016):
Under the Service Tax Law (Finance Act, 1994) — before the introduction of GST:

Threshold Exemption:

A service provider was exempt from service tax registration if the aggregate value of taxable services in a financial year did not exceed ₹10 lakhs.

This meant:

No need to register,

No need to collect or pay service tax,

No need to issue a service tax invoice.

Voluntary Registration:

However, if a client insists on a tax invoice with service tax, then:

You must take service tax registration before issuing such an invoice.

You can then charge service tax, deposit it, and file returns.

🔴 Important:
You CANNOT legally issue a service tax invoice or collect service tax without first obtaining a Service Tax Registration (STC number).

Doing so without registration is a violation of the Finance Act, and can attract penalties for:

Unauthorized collection of tax,

Non-deposit of collected tax,

Non-registration when required.

🧾 Your Client’s Case:
Particular Status
Provides services ✅ Yes
Value of services < ₹10 lakhs
Has service tax registration ❌ No
Wants to issue service tax invoice ❌ Cannot unless registration is obtained
Can register voluntarily ✅ Yes — then charge and deposit service tax

✅ Conclusion:
Since the client wants to issue a service tax invoice, they must first obtain service tax registration, even if their total turnover is below ₹10 lakhs.

Only after registration can they:

Charge service tax,

Issue a valid invoice with STC,

Deposit collected tax with the department.

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