TaxTMI 
TaxTMI 
Chartered accountants or any other service provider is not aware on the first day of financial year whether he is going to cross rs. 10 lac receipt in current year and will be eligable for service tax or not. 1. If he do not collect any service tax initially but crosses yearly receipt of 10 lac in the mid of the year, whether he has to pay service tax on the entire amount of receipts ? 2. If he collects service tax from the inception and do not cross the 10 lac receipt whether he has to pay the tax already collected by him Please guide
Aplicability and liability of service tax
10 Apr 2009 
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Turnover-based service tax exemption depends on preceding year receipts; tax applies on excess once threshold is crossed.
Applicability of service tax for professionals turns on a turnover-based exemption measured by receipts in the immediately preceding financial year. If the preceding year's receipts did not exceed the exemption threshold, the professional need not charge or remit service tax at the start of the current year. If current year receipts exceed the threshold, tax is payable only on the excess for that year, and after breaching the threshold the professional must charge and remit service tax from the first rupee in the next year. (AI Summary)
Applicability of service tax for professionals turns on a turnover-based exemption measured by receipts in the immediately preceding financial year. If the preceding year's receipts did not exceed the exemption threshold, the professional need not charge or remit service tax at the start of the current year. If current year receipts exceed the threshold, tax is payable only on the excess for that year, and after breaching the threshold the professional must charge and remit service tax from the first rupee in the next year. (AI Summary)