Service tax

Others 243 views 12 replies

Saumya Nigam

9 Points Posted on 03 October 2016

I am working in IT as FTE till today, my income tax was deducted via my employer and never face any difficulties yet. Now I am moving as consultant on daily wedges, not sur how taxes will be calculated now, someone told me now I need topay service tax too, could you please help me on how my tax will be computed as consultant, did I need to pay both income tax and service tax, how much percent approx I need to pay, is still 80 c and other applicable for me? Very confused

Replies (12)

Kajal Jain

Freelancer-Chartered Accountant

551 Points Posted on 03 October 2016

firstly... Service tax is applicable

Kajal Jain

Freelancer-Chartered Accountant

551 Points Posted on 03 October 2016

first service tax is applicable only if your sales/professional fees crosses 10lakhs...once it crosses 9lakhs...you have to register yourself for service tax and start charging clients after it crosses 10lakhs...

clients may deduct TDs if your one time payment is more thn 30000 or overall payment is75 k or more.tds will be deducted @ 10%
yes..u still have 80c and other more allowances..

sorry for the earlier incomplete reply..
let me know in case u need further help

Saumya Nigam

9 Points Posted on 03 October 2016

Thanks Kajal, did I need to pay both service tax (15%) and Income tax (30%),means overall 45% of my income.

How to register for service tax and is there any benefits from same.

Thanks in advance

Saumya

Kajal Jain

Freelancer-Chartered Accountant

551 Points Posted on 04 October 2016

for service tax u need to cross 9/10 lakhs...

income tax..
if u are a company thn 30%
if individual thn slab rates.

for registration contact me on jainkajal0609 @ gmail.com

benefit is only that u are paying taxes to central government .. Service tax is not from ur pocket..u take it from ur client and pay it to the gov