Krishna S (Designer) (23 Points)
17 November 2016I'm designer and i work online for my clients in Europe, at the end of work they ask me to send legal tax invoice for payment.
Can someone guide me what are the requirements for making an invoice and how i can do so? i have PAN card, do i have to take TAN for invoice?, how much percentage to charge for VAT? i seen some invoices have 14.5% and some charge 11%, 7% etc, do i need to make Retail invoice or something else? or any other govt things i need for invoice?
Shyam
(NA)
(34 Points)
Replied 23 November 2016
My understanding is this is a service so need for VAT.
Annual Turnover Up to 10 lakhs is exempt from mandatory registering for Service tax, so no need to collect service tax if your turnover is less than that.
Just send them an simple invoice without any tax addition.
CAclubindia
