Service tax sucks

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varun gautam (Querist)

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)

10 June 2013 Yes...as importer of services...reverse charge mechanism would apply.

Message likes : 1 times

varun gautam

varun gautam (Querist)

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)

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)