Service tax registration & collection

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Ankit Kumar Daga (Querist)
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26 March 2015 I want to know the procedure for availing the SSI exemption. Whether the service provider needs to charge the service tax to the customers if he is availing SSI exemption or is below the limit of 10 lacs. Also if the registration is not taken, should the service provider charge the service tax on his invoice.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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26 March 2015 no you dont need to charge it if u r not having registration....

From the day u started charging it, u needs to pay it dear...

So dont charge if you are below the limits of 10 lacs

As u cross this limit, u needs to start charging ST

Ankit Kumar Daga

Ankit Kumar Daga (Querist)
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26 March 2015 Whether the service provider needs to register for availing SSI exemption or an letter needs to be given to the department. Kindly advise as to the procedure for availing SSI exemption.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2025 Here's a clear explanation about **SSI exemption in Service Tax, charging service tax, and registration requirements**:

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### 1. **What is SSI Exemption?**

* **SSI (Small Scale Industry) exemption** under Service Tax means:
If the **aggregate turnover of taxable services provided by a service provider is less than ₹10 lakh in a financial year**, the provider is exempt from paying Service Tax.

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### 2. **Do you need to charge Service Tax if you are availing SSI exemption?**

* **No.**
If your turnover is below ₹10 lakh, **you should NOT charge Service Tax on your invoices.**
* Charging Service Tax without registration and below threshold is not correct.

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### 3. **Is Service Tax registration mandatory to claim SSI exemption?**

* **No mandatory registration is required if you are below the exemption limit and not charging service tax.**
* You may choose to register voluntarily (e.g., if you want to avail CENVAT credit), but it is not compulsory.

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### 4. **If you cross the ₹10 lakh limit:**

* You **must obtain Service Tax registration immediately** (within 30 days of crossing the limit).
* You **must start charging Service Tax on your invoices from the day your turnover crosses the exemption limit**.
* You are liable to pay Service Tax on taxable services provided from that date.

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### 5. **Procedure to avail SSI exemption**

* No formal procedure or letter is required to avail SSI exemption.
* You simply **do not register and do not charge service tax till turnover crosses ₹10 lakh**.
* Maintain proper records of turnover to monitor the limit.

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### 6. **Summary Table**

| Condition | Register for Service Tax? | Charge Service Tax? |
| ------------------- | ------------------------- | ----------------------- |
| Turnover ₹10 lakh | Mandatory | Yes, from crossing date |

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**So, to sum up:**

* Below ₹10 lakh turnover → No registration needed → Do not charge service tax.
* Cross ₹10 lakh → Register → Start charging service tax → File returns accordingly.

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If you want, I can help you draft a checklist to monitor turnover or a sample letter/email to explain this to clients or authorities. Would you like that?

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