Exemption from Service Tax

[CA AJAY KUMAR AGRAWAL]

Kindly share your views on the following:-

In the year, where value of Taxable Services exceeds ₹ 9 Lacs he is required to get registration & pay Service Tax when Gross Receipts ₹ 10 Lacs. My question is once he so starts paying Service Tax & in future his Gross receipts become much less (may be it remains low for 1 or 2 years or for long period) whether he has to regularly pay Service Tax or he will be again exempted when Gross Receipt is less than ₹ 10 Lacs?

AI Summary

Service tax threshold: falling below it restores exemption, but registration and nil return obligations may continue.
Exemption from service tax resumes when gross receipts fall below the threshold after previously exceeding it, but registration remains effective until formally surrendered and filing obligations (including possible nil returns) may continue; late-year crossings of the threshold can create liability for the entire financial year with potential interest, and pending tax reform may change rules.