Applicability of service tax and income tax
This query is : Open
22 September 2012
Hello,
My self, Virag Shah from Ahmedabad.I am doing freelancing work as accountant and i am in study of Chartered Accountant.I have
one query while doing accounting, Income Tax and Service Tax.My case is as below:
One of my client doing work of collecting subject from various clients ( both indian and foreign) for writing articles for websites or
any other publication on internet.After that he will take back this work to professional writers ( both indian and foreign) for writing
whether writers are on internet or in situated particular his office.
In my sense as per nature of work, He is not applying his mind while writing article, he is just hand over work to writers and complete the work as per requirement of client.His mind is applying for searching clients and writers on internet.All the searching work is done on Internet.I have some doubts about work.
1. My client is receiving payment via online internet.He will receive full payment for work and after deducting his commission/brokerage or what ever say,he will pay to writers (both in Indian currency and foreign currency) via credit card system or online transfer.Whether this work is termed as business or profession?
2. How is accounting made? With full receiving amount or Net commission amount.
3. Writers are not charging Service Tax on bills and TDS is deducted as per professinal basis as per their thinking.I just want to know whether service tax is applicable or not, if applicable services with foreign clients and payment to foreign writers both are termed as export of services or business auxiliary services or any else.
Hope I have made some try about querry for understanding to you.Give me quick reply,Sir.
Regards
Virag Shah
PH -8460570594
My self, Virag Shah from Ahmedabad.I am doing freelancing work as accountant and i am in study of Chartered Accountant.I have
one query while doing accounting, Income Tax and Service Tax.My case is as below:
One of my client doing work of collecting subject from various clients ( both indian and foreign) for writing articles for websites or
any other publication on internet.After that he will take back this work to professional writers ( both indian and foreign) for writing
whether writers are on internet or in situated particular his office.
In my sense as per nature of work, He is not applying his mind while writing article, he is just hand over work to writers and complete the work as per requirement of client.His mind is applying for searching clients and writers on internet.All the searching work is done on Internet.I have some doubts about work.
1. My client is receiving payment via online internet.He will receive full payment for work and after deducting his commission/brokerage or what ever say,he will pay to writers (both in Indian currency and foreign currency) via credit card system or online transfer.Whether this work is termed as business or profession?
2. How is accounting made? With full receiving amount or Net commission amount.
3. Writers are not charging Service Tax on bills and TDS is deducted as per professinal basis as per their thinking.I just want to know whether service tax is applicable or not, if applicable services with foreign clients and payment to foreign writers both are termed as export of services or business auxiliary services or any else.
Hope I have made some try about querry for understanding to you.Give me quick reply,Sir.
Regards
Virag Shah
PH -8460570594
27 September 2012
The place of provision of services is the key for the services of co-ordination. It appears to fall under Rule 3 wherein the recipeint is outside India. Since recives in CFE may notbeliable.
However for services utilsied from others under reverse charge you may have to examine agin in terms of place of provision of services rules.
However for services utilsied from others under reverse charge you may have to examine agin in terms of place of provision of services rules.
27 September 2012
sir,
What about accounting ? and however,receipt from indian client service tax is applicable and if applicable in which head.
Nature of work:business or profession?
What about accounting ? and however,receipt from indian client service tax is applicable and if applicable in which head.
Nature of work:business or profession?
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