Service tax -taxable amount

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R Srinivasan (Querist)
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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

CA R SEETHARAMAN (Expert)
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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

R Srinivasan (Querist)
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28 October 2015 Any other opinion pl....

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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25 July 2025 Good question! Here’s how it works for **service tax registration and liability** based on the threshold limit:

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### 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.

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### 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).

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Let me know if you want details on how to apply for cancellation or anything else!

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