Service Tax
This query is : Resolved
Ashish Jain
(Querist)
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.
(Expert)
01 June 2016
You need to take a service tax registration if you require to issue a service tax bill.
Rupesh Jain
(Expert)
01 June 2016
if below 10 lacs then not required service tax registration.
Vishakha Kejriwal.
(Expert)
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
(Querist)
02 June 2016
Yes Vishakha One of their customers is demanding a Service Tax invoice.
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.
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- EPF ECR NEW FILE SEP 17TH 2026
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- TAX AUDIT ON PROFESSIONAL INCOME
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Oct 2025 Invoices
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- EPF ECR NEW RULES Sep 17th 2026
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Unable to File TDS Q2 Return – New TRACES Portal Error
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
