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Service tax applicability for translation agency services


28 November 2015 Hi,
I am currently owning a translation agency. The process is I get work from abroad clients, usually from European countries. I outsource the work to the native language experts to get the work done.
To be more clear, i take up german translation jobs from outside India and get it done by a native german. And my import of services exceed 10 lakh.
Do it have to pay service tax for any amount exceeding 10 lakh?
If i have to pay, then i would be paying huge sum as tax. It would be huge if i have to pay income tax and service tax. Please clarify on this matter

28 November 2015 You have to pay service tax for import of services i.e. service of native German. For export of service no service tax payable.
For import of service for the first year only you have to pay service tax in excess of 10 lacs from next year service tax applicable on full amount.
Unless your earnings are huge you are not likely to pay huge service tax and income tax. You are paying only part of your earnings.

28 November 2015 Hi Sir,
I have crossed the limit of 10 lakh in my first year. But if i have to pay the service tax on full amount, it would be impossible for me to paym For example, if i get a income worth 20 lakh, i would be spending 15 lakh for import of services. So that means, i have to pay 2.5 lakh on servixe tax and .5 lakh income tax. It would amount to more than half of my actual earnings going in the way of tax..
Is there any provision for getting a deduction in a case like this?




28 November 2015 Hi Sir,
I have crossed the limit of 10 lakh in my first year. But if i have to pay the service tax on full amount, it would be impossible for me to paym For example, if i get a income worth 20 lakh, i would be spending 15 lakh for import of services. So that means, i have to pay 2.5 lakh on servixe tax and .5 lakh income tax. It would amount to more than half of my actual earnings going in the way of tax..
Is there any provision for getting a deduction in a case like this?



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