ST Payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2011 In case Service Provider is registered under Service Tax because of Rs 9 Lakh exemption limit , but annual Service Provided amount not exceeds Rs 10 Lakhs , whether need to Pay Service Tax from next year from beginning or wait till 10 Lakhs in next year..

Rahul Singhal

Rahul Singhal (Expert)
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16 February 2011 Hi,
If you get Registered under service tax, then you get started taking Service Tax from the parties concerned and deposit the same to the credit of the central government

Thanks
CA Rahul Singhal
rahulajaysinghal@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2011 What if Gross Receipts is less than Rs 5 Lakhs

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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25 July 2025 Here’s how Service Tax payment and registration works in this context (as per pre-GST Service Tax rules):

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### 1. **Threshold for Service Tax Registration**

* If your **aggregate turnover** (value of taxable services) **exceeds Rs 9 Lakhs in a financial year**, you are **mandatorily required to register** under Service Tax.

* If turnover is **below Rs 9 Lakhs**, registration is **not mandatory**, but you can choose to register voluntarily.

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### 2. **If Registered (Voluntarily or Mandatorily)**

* Once **registered**, you **must charge Service Tax on your taxable services and deposit it** with the government, **even if your turnover is below Rs 10 Lakhs**.

* In other words, **registration itself triggers the liability to collect and pay Service Tax**.

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### 3. **What if your turnover remains below Rs 10 Lakhs next year?**

* You **continue charging and paying Service Tax on all taxable services** from the date of registration.

* There is **no “waiting” until you reach Rs 10 Lakhs next year**.

* If you want to stop paying Service Tax because turnover falls below threshold, you must **apply for cancellation of registration**.

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### 4. **If Gross Receipts is less than Rs 5 Lakhs**

* If your aggregate taxable service turnover is below the threshold of Rs 9 Lakhs, **you are not required to register or pay Service Tax**.

* No Service Tax liability arises if you are **not registered** and turnover remains below threshold.

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### **Summary Table**

| Situation | Requirement |
| ----------------------------------------------- | --------------------------------------------------------- |
| Turnover exceeds Rs 9 Lakhs | Mandatory registration and ST payment on taxable services |
| Registered but turnover < Rs 10 Lakhs next year | Must continue charging & paying ST |
| Turnover below Rs 9 Lakhs and unregistered | No ST liability or registration required |
| Voluntary registration | Must pay ST on all taxable services |

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Let me know if you want a sample format for the **Service Tax invoice** or **application for cancellation of registration**!

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