Service tax sucks

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varun gautam (Querist)
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10 June 2013 Hello Expert

let me explain there

i own a small software development firm , and i already did the business of 20 laks

99% work i get online from some site (elance , freelancer , odesk ) . these site charge 10% amount of the project as Fees , after that i transfer money to pay paypal . its take 5% of the amount as there Fees

if i get any project of $1000 then i get $855 in my hand ,

so my question is that : all the client from USA and UK , if they not pay any service charge , in this case i need to pay service tax .

waiting for reply .

sivadas chettoor

sivadas chettoor (Expert)
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10 June 2013 Yes...as importer of services...reverse charge mechanism would apply.

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varun gautam

varun gautam (Querist)
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10 June 2013 from last year IT service is not Consider as as Export of service . can u please give me any best solution for the same ,

sivadas chettoor

sivadas chettoor (Expert)
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10 June 2013 Dear Varun,

Can you please elaborate on the kind of services rendered by you and how the foreign exchange in the form of fee is received? I wish to answer your querry after referring to place of provision of service rules and Rule 6A of the ST rules.

sivadas chettoor

sivadas chettoor (Expert)
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