Do we need to register for service tax ?

Dear Sambit 

in the above mentioned situation, you need to register your firm in service tax, since you are exporting the services therefore, will accordingly be governed by the provisions of section 66A .

Ok how is the service tax calculated ?

Almost 90% of our payments come to our PayPal accounts, which is then tranferred to our Indian bank accounts.

How is the calculation done ?

Service tax will be calculated on the gross receipts (abatement and exemptions have to be considered accordingly for a specifiic service) that you have received for rendering services.

What if you get payments in dollars to your Paypal ?

How will you show service tax?