Applicability of service tax

If In the preceding financial year aggregate value of taxable services have not exceeded threshold limit of 10 lac, then in subsequent year firm can avail exemption of service tax on taxable services valuing upto Rs 10 lac, excess over 10 lac will be chargeable to service tax.

reply to your query-

1. that clarifies the firm have to charge service tax in excess of Rs 10,00,000.

2. Exemption upto Rs 10 lac is applicable only for the first year, subsequent year will be chargeable to tax with normal rates of service tax without any exemption. So even if in next year firm do not provide service in excess of 10,00,000. Liability of service tax will arise.

Agreed to above