Service tax rule for it professionals

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2011 Hello,

I am working as a Consultant for an Indian Firm (Software Developer). At the same time I am doing some outsourcing jobs too. Mainly my services are targeted to the foreign customers and not from india. I am getting the enumeration in USDs. I am getting Form 16 A.
I heard from somewhere that one has to pay service tax if his yearly income crosses 10,00,000 INR.

I would like to know if this rule is applicable for the Software professionals who are working from india, but providing the services only to foreign companies?

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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19 December 2011 Dear friend, according to the provisions of Finance Act, 1994 as amended time to time if turnover or gross receipts from any service has been over and above Rs. 10,00,000/- then registration and payment of Service tax is necessary. Your are providing services from India to your foreign parties it does not matter. You have to pay service tax as applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2011 Thanks Mr. Deepak. My further query is, I am just rendering the services and not exporting anything in the physical form. Then also the service tax rule applies to me? Basically I use to develop a site for my customers and the target audience of this site are not indian customers.
The end product (which is a computer code basically) which I use to upload on their servers residing outside India. Please advice.