Service tax registration - exemption limit

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Company A is in consultancy, covered under Management Consultancy Services.As 100% billing ( Total billing Rs. 25 lacs) is outside india, it is covered under Export of services and thus no service Tax. The query is that if it does Local billing of Rs. 6 lacs in a year, will it have to register and charge service tax ??

AI Summary

Consultancy Firm Exceeds Exemption Limit, Must Register for Service Tax on Local Billing Despite Export Services Being Zero-Rated Company A, engaged in management consultancy services, primarily bills clients outside India, qualifying as an export of services and thus not subject to service tax. However, a query arises regarding whether local billing of Rs. 6 lacs requires service tax registration. The response clarifies that export services, although zero-rated, contribute to the taxable service value for exemption limit calculations. Consequently, since the total billing (exports plus local) exceeds the exemption threshold, Company A must register and charge service tax on the local billing component.