Service tax -taxable amount
This query is : Resolved
R Srinivasan
(Querist)
28 October 2015
If a service provider on reaching the threshold limit of Rs 10 lacs got registered and started collecting service tax on his invoices in current year and in next year, suppose his taxable services are below Rs 10 lacs, is he liable to charge and collect service tax on his inovices ? Or is he to charge service tax only if the income crosses Rs 10 lacs ?
CA R SEETHARAMAN
(Expert)
28 October 2015
From next year he has to charge service tax on all invoices even his taxable service is below 10 lacs.
R Srinivasan
(Querist)
28 October 2015
Any other opinion pl....
25 July 2025
Good question! Here’s how it works for **service tax registration and liability** based on the threshold limit:
---
### Key points:
1. **Threshold limit for registration** is Rs. 10 lakhs (in aggregate value of taxable services) in a financial year.
2. **If you cross Rs. 10 lakhs in a financial year**, you become **liable to register and charge service tax** from the date you cross the threshold or from the date of registration, whichever is later.
3. **Once registered**, you must **charge and collect service tax on all taxable services provided**, **regardless of whether your turnover falls below Rs. 10 lakhs in the next financial year**.
4. So, if in the **next year your taxable turnover is below Rs. 10 lakhs**, **you still need to charge service tax**, because once registered, you remain liable until you officially apply for cancellation of registration and get it approved.
---
### Summary:
* Crossing Rs. 10 lakhs threshold → Register and charge service tax.
* After registration, **even if next year's turnover falls below Rs. 10 lakhs, you must continue charging service tax**.
* To stop charging, you must apply for cancellation of registration (subject to approval).
---
Let me know if you want details on how to apply for cancellation or anything else!
---
### Key points:
1. **Threshold limit for registration** is Rs. 10 lakhs (in aggregate value of taxable services) in a financial year.
2. **If you cross Rs. 10 lakhs in a financial year**, you become **liable to register and charge service tax** from the date you cross the threshold or from the date of registration, whichever is later.
3. **Once registered**, you must **charge and collect service tax on all taxable services provided**, **regardless of whether your turnover falls below Rs. 10 lakhs in the next financial year**.
4. So, if in the **next year your taxable turnover is below Rs. 10 lakhs**, **you still need to charge service tax**, because once registered, you remain liable until you officially apply for cancellation of registration and get it approved.
---
### Summary:
* Crossing Rs. 10 lakhs threshold → Register and charge service tax.
* After registration, **even if next year's turnover falls below Rs. 10 lakhs, you must continue charging service tax**.
* To stop charging, you must apply for cancellation of registration (subject to approval).
---
Let me know if you want details on how to apply for cancellation or anything else!
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?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- MSME disclosure and disallowance
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- 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
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
