Foreign Consulting Income

Suresh (Director) (25 Points)

22 January 2010  

Hi everyone,

I am running a small scale software company in bangalore. Our nature of business is we have our employee working for an MNC company in bangalore and we invoice the MNC company directly in US. we will be getting payment for consulting pay directly to our bank from US in dollars. then we will pay our staff from the payment.

My queries:

1. Since this service is being provided to a foreign company, will it be exempt from Service Tax?

2. Do I still need to register for Service Tax ?

3. How will i show the income to the goverment? any other tax need to paid? if yes, how?

I Appreciate if you could spend on answering my query.

Thanking you

Suresh.