16 October 2014
1. I have started working as a freelance consultant professional from this financial year, and my fees for the first year from my present client, shall be amounting to 13 lakhs. Am i liable to pay service tax this year, or from the next financial year?
2. For execution of the clients works, some expenses directly linked to the work of this particular client, are borne by the client (travel, broadband) and reimbursed on the basis of actual bills. Am i supposed to charge service tax?
16 October 2014
For the first year basic exemption of 10 lacs available you have to pay service tax on 3 lacs only. From next year no basic exemption available you have to pay service tax on the full amount. For reimbursement service tax not applicable.