I am starting a software consultancy and services company as proprietorship firm. I am at Ahmedabad.
I have confusion about the registration for Service Tax or VAT or both. I explained here my scenario.
I am working as a freelance developer since 8months and I have an customer in Italy. Since 8months he was paying me by via Western Union money transfer but now he can not able to send me more as he finished his certain limit of cash transactions. So my customer asks me for an legal INVOICE with VAT number ( as all European country have VAT only).
I am working for opensource applications and giving technical support to international customers.
Do I need to apply for VAT ? Do I need to apply for Service Tax ? Do I need to apply for both ?
I also ask to some friends (who own a S/W company like me and CA) but not getting satisfactory answers, because none of them face same situation like me. All alre working without VAT or Service tax number and my contact CA have find this case first time.
) now 
