Service Tax

yes he can start charging service tax from the very first bill in FY 2010-2011.

he has to register himself within 30 days from the day turnover exceeds the limit...

he has to charge service tax from the very first bill and he had to get register witthin 30 days of turnover exceeding Rs.9 lakhs.

For 10-11 he is liable to tax. But for 11-12 he is eligible for basic the exemption.

Originally posted by : Unnikrishnan Nair N
	For 10-11 he is liable to tax. But for 11-12 he is eligible for basic the exemption.

it is prudent to register when turnover goes to 9 lac and it is not mandatoey to charge service tax on registration you can opt exemption in f.y. 2009-10 further if you have charge service tax then you have to deposit it whether your turnover is less than 10 lac or more than 10 lac.

so if you charge service tax in f.y. 2010-11 you have to deposit it otherwise you take exemption of limit 

In 2011-12 its upto you if you don't charge and turnover not exceed 10 lac you can again get exemption of limit but in case the turnover exceeds 10 lac in any month of f.y. 11-12 you will become defaulter for not charging service tax on previous months bills. so it is advisable to charge service tax even if you have turnover less than in f.y. 2010-11. As it was always asume that business will grow not decline