Regarding service tax liability

This query is : Resolved

ragav (Querist)
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29 June 2013 I am doing BPO services, get paid monthly in foreign currency. I am just an individual service provider serving a foreign client working like freelance. My income is around 5 lakhs per year.

1. Kindly let me know whether I have to pay service tax.

whether I need service tax registration.

rajula gurva reddy

rajula gurva reddy (Expert)
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30 June 2013 As long as your Service income is within the limit of Rs.10 Lakhs, there is no liability from you. Further, if you are directly providing the service to the foreign client and receiving the amount in convertible foreign currency, there is no liability of Service TAx as it amounts to export.

ragav

ragav (Querist)
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30 June 2013 Thank you for the reply sir. So I understand that I do not need service tax registration as I have never crossed 5-6 lakhs per year.

So, I am required to pay only the INCOME TAX RIGHT? I am an individual.

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ragav

ragav (Querist)
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RENGARAJ R.K

RENGARAJ R.K (Expert)
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02 July 2013 Yes you will be covered in income tax and not in service tax as you need not tax service tax RC for the first 10 lacs. Also, if you receive the proceeds in a convertible foreign exchange all your service income is exempted, subject to conditions laid down.