TaxTMI 
TaxTMI 
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 ??
Service tax registration - exemption limit
05 Jun 2008 
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Export of services treated as taxable value affects registration threshold; local taxable component becomes liable to service tax.
Export of service is not an exempted service but is treated as a taxable, zero-rated service; therefore the value of taxable service for the small service provider exemption includes export receipts. The aggregate of exports and local billing must be compared with the exemption threshold, and where the total exceeds that threshold the provider must register and the local taxable component is liable to service tax. Services subject to reverse charge are excluded from this computation. (AI Summary)
Export of service is not an exempted service but is treated as a taxable, zero-rated service; therefore the value of taxable service for the small service provider exemption includes export receipts. The aggregate of exports and local billing must be compared with the exemption threshold, and where the total exceeds that threshold the provider must register and the local taxable component is liable to service tax. Services subject to reverse charge are excluded from this computation. (AI Summary)