Service Tax Liabiliyt

You should not consider value of service render. You should consider receipt basis for service tax liability. I assume that 10 Lacs you received from customers against service render than service tax only will applicable on amount exceeding 10Lac.

Being the first year of entity, it will be considered as a Small Service Provider(SSP's)

As Per E/N 6/2005, First receipts of Rs. 10 Lakhs(and not the value of  services rendered) shall be exempt from whole of service tax. Over and above will be charged to service tax.

Service tax payable only on excess of Rs 10 lacs in first year of service tax receipts ,