Starting to work on consulting basis

The benefit of 10.00 lakhs can be availed for the first year.

Then onwards you have to collect and discharge the service tax.

You also have the option of collecting and discharging the service tax from the beginning also.

Upto 9 lacs there  is no need to get yourself registered under the Service Tax Act. But your activities show that  you are squarely covered under the service tax net.  After 9 lacs go to the Service tax website aces.gov.in and get the PAN based service tax registration number. Avail the threshold limit of 10 lacs in the first year and start collecting service tax @ 10.3% in all your debit notes/invoices for consultancy services.  There is no slab system like Income tax. Everybody has to pay 10.3% once they reach 10 lacs limit.  You can avail input tax credit.

rengaraj .r.k

Dear Ashfaque,

As you are saying that the invoice amount will definetely go of more than 12 LPA, you have to apply for registration in form ST-1 to your range supridentt. when your gross value of service exceeds Rs 9 Lacs. As soons as the value of services exceeds Rs 10 lacs, you have to start charging service tax in the invoice since there is a legal obligation on you to pay the service tax...

Further If u are also in receipt of some sort of services and you have to pay ther service tax along with the service charge to the service provider, you can claim this amount as cenvat credit at the time of calculating your service tax liability.