25 January 2009
Whether the web development ( not designing)is taxable service under service act. > all the development is made for the overseas client i.e exported (no office in India)and fees is received in convertible foreign exchange. > new business,gross receipt till date are 10,15,000 rs. it include 150000 received on 8 jan 09. no service tax number is applied yet. and not registered under STPI etc.
> now whether CO. should apply for service tax no. or not. someone told me that amendments are made in July 08. so if service tax is applicable receipts will be calculated after that date only. Pls guide
1. This is newly incorporated (in may 08) pvt ltd co. with less then 10 employees. 2. The payment is received on the constuction of a portion i.e the requiered facility in web site. Only one client is there. 3.The service used by clint outside india. There is no such online support from india it is done by client from their rnd. 4. No amc in the contract.
25 January 2009
Now first step is to see where this service falls, it falls under the second category.
Clarify the following
Whether this is one time charge Services will be used outside india We will not support the system from india whether there is amc attached to the development contract Whether there will be online / onsite support
We can evaluate based on the above, apparently it seems to be export of service, but the terms of contract needs to be known, before affirming your views
CAclubindia
