Download ca pcc/ipcc & final november 2011 answers

IPCC 827 views 4 replies

Ankit G

Founder

25 Points Posted on 15 December 2011

I have recently started a proprietory concern. We are dealing in Outsourcing - BPO ( Data releted tasks, Web designing, Tele calling and others ) (US , Europe clients only).

I need some assistence on Tax part.

1. What all Taxes are applicable for me (Apart for Income Tax, i believe Service Tax is exmpted as we receive funds from outside India)

2. What all registration we need to apply for / we must have

Any help will be grately appreciated !

Thanks

Ankit

Replies (4)

CS Alok Mishra

Income Tax Practitioner

791 Points Posted on 15 December 2011

Mr. Dushyant, i think it will be better to post your matters apart from someone's. Here Ankit has posted his query and it was expected that you will answer it instead of doing other thing (though it good). Mr. Ankit , i think you should ask this query to experts. They will defenately help you.

CA Prabhat Gupta

Manager (Indirect Taxes)

821 Points Posted on 15 December 2011

Mr. Ankit,

In my opinion, BPO services provided to clients outside India are considered as export of services and hence exempt. Futher as per Section 69 of Finance Act, 1994 persons liable to pay service tax are required to get registered with service tax department:

"Every person liable to pay the service tax under this chapter or the rules made there under shall, within such time and in
such manner and in such form as may be prescribed, make an application for registration to the 4[Superintendent of Central Excise.]"

As you are not required to pay service tax, registration is also not required in present sitiation.

Ankit G

Founder

25 Points Posted on 15 December 2011

Originally posted by : CA Prabhat Gupta

Thanks Prabhat ! Do u believe any other Registration (any legal , firm related ) is required ?

Mr. Ankit,

In my opinion, BPO services provided to clients outside India are considered as export of services and hence exempt. Futher as per Section 69 of Finance Act, 1994 persons liable to pay service tax are required to get registered with service tax department:

"Every person liable to pay the service tax under this chapter or the rules made there under shall, within such time and in
such manner and in such form as may be prescribed, make an application for registration to the 4[Superintendent of Central Excise.]"

As you are not required to pay service tax, registration is also not required in present sitiation.