• How would the Service tax work in my case?

I run an Internet consultancy company and provide services to a company in US only. Because I am only engaged in servics with outside India, I am not liable to pay service tax.

Now there is this one new client that is based out of India with whom I want to work. The payment would be one time of INR 40,000. What would be my service tax implications in this particular case?
I don't get any other domestic payments from any other companies.
Asked 5 years ago in Service Tax


As your taxable services have not crossed the threshold limit, you shall not be liable to service tax payment on the domestic service till the time you cross the threshold, coz the words are aggregate value of taxable services should exceed Rs 10 lakhs.



Ria Nagpal
CA, Ahmedabad
49 Answers
5 Consultations

5.0 on 5.0

You don't need to pay any service tax until your taxable value of services exceeds 10lacs.

So you don't need to worry about small domestic receipts

Please feel free to revert in case of any doubts

Thanks and Regards

Abhishek Dugar


Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hello Sir,

Service tax will not be applicable in your case, unless you cross the threshold limit of 9 Lacs in 1 financial year.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.


Rohit R Sharma


Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0


There would not be any service tax liability. Service is liable only if you cross the threshold limit of Rs. 9 lakhs.



M.Com, CA, LLB

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0


If the income is only INR 40,000 then no need to pay Service Tax. You will have to register for Service Tax if taxable turnover exceeds Rs. 9 Lakhs

Pradeep Bhat
CA, Bengaluru
542 Answers
91 Consultations

5.0 on 5.0

Dear sir,

No service tax liability till your total turnover in india ( In INR crosses Rs. 9,00,000/- ) during a financial year

Vishrut Rajesh Shah
CA, Ahmedabad
804 Answers
30 Consultations

5.0 on 5.0

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