Levy of service tax

As the firm is already registered with the Service tax department it can collect the service tax on labour. The limit of 9 Lakhs is a option to choose. Even if the firm was not registered and wanted to collect service tax from the 1st rupee itself, it can do so

Thanks for replying, but Mihir Sir, The firm has been registered under category of service recipient under taxable service of Transport of good by road ( Applicable for reverse charge mechanism).. in such case what will apply??

If you are goin to provide labour services in future, you will have to alter the registration (ST-2) and start collecting service tax.

As per the rules if the amount of billing has not crossed 9 lakhs than you are not reauired to avail the service tax no. It will be better you dont take the no. and collect service tax from your client. Once you take the no you will come under supervision of one more dpartment.