Urgent query regarding service tax

1065 views 6 replies

Rituparna Chanda

Proprietor

30 Points Joined January 2010

Hi all,

I am software service provider running my own proprietorship business. I am presently having a foreign client who is paying me in dollars transfering my payment( which includes 10.3% service tax) to my current account in Kolkata branch. The queries posted in the service tax forum topic "Foreign Consulting Income" are partly relevant to me, along with that I have some more queries.

1. Do I need to register under any other taxation rules in India other than service tax and trade license pymt?

This year I am going to pay my first IT return and my turn over will be something around Rs5 lakhs pa

2.The service tax category has been wrongly registered under Business Auxiliary Services whereas it should have been done under information technology software services. Its been already almost 1 yr and I have also paid 2 returns under this category. How do I change this?

3. It seems I didn't have to register at all for my foreign client's pymt. Then in this regard following your previous reply I want to know what is CFE?

4. If in future I have domestic clients then I would be needing this service tax regn and category change( back to my qs 2).

Waiting eagerly for your reply.

Thanks & Regards,

Rituparna C.

Replies (6)

Amir

Learner

4016 Points Joined December 2009

Dear Rituparna,

Registration under service tax is to be obtained when ur gross receipts(Foreign +Domestic) crosses Rs. 9 Lacs

Secondly, Services rendered outside India like ur foreign clients are exempt from service tax on fulfilling certain conditions..

Thirdly, regarding correction in registration certificate, U have to file "ST-1" & mentioning the correct particulars, thereby u will receive a fresh registration certificate as amended

Rituparna Chanda

Proprietor

30 Points Joined January 2010

Thanks for the reply.

Following ur reply what are the conditions for getting exemptions from service tax on foreign currency income.

Also what do I submit for rectification of service tax category along with ST-1

Thanks & regards,

Rituparna C

Amir

Learner

4016 Points Joined December 2009

Dear Rituparna,

Conditions for exemption -

1) Payment should be received in Foreign Currency

2) Receiver of services must be located outside India when such services are delivered/provided.

For details u can refer Rule 3 of Export of services Rules

Regarding ur second query just a simple application on a plain paper that earlier it was mistakenly considered as Business Auxillary Service instead of IT Services..

PRATIK P MEHTA

Final Student articles

125 Points Joined January 2009

I Agreed with Amir Sir

satya prakash mishra

Accounts Offier

28 Points Joined September 2008

i m working in hotel industory, its buniness is all over india, our hotel provide management services to other hotels which is not his own.

is service tax is liable on management service.

Is any exemption on this type of management fees.

Satya

Pavan Jain S

Chartered Accountant

1575 Points Joined December 2008

I guess it is taxable under management or business consultant services. you can avail the benefit of threshold exemption of Rs. 10 Lakhs if other conditions satisfied