Topic: Consultant net income 10L in FY2007-08, paying service tax?

If I am a consultant , age being 64 years, total income is less than 10L in FY2007-08 , I have some amount as reimbursable for driver and petrol. My income will be calculated 1. After these reimbursable or I have to add these amounts 2. I calculated my total billing , including reimbursable, crossing 8L , so I started paying Service tax. 3. situation is , if first point is true than I need not pay service tax. 4. Will the service tax amount , if charged to company will also be treated as income. 5. If I am out of net of service tax, the limit already raised to 10L now, how to go about taking not only refund but also avoid charging to company and also paying service tax Please advise point wise.

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