If a continuous supply of service contract(eg. works contract) is completed in 2 years, then exemption to small service provider(ssp) of rs. 10 lacs (taxable turnover) is available in both the years?
Service tax exemption is based on gross receipt which includes billing also. If you have billed or received more than 10 lakhs in a year, you need to charge.
However if progressive billing was done, you do not fall under this as in a year billing did not cross 10 Lakhs.