Exemption limit with indian and foreign income

1089 views

Save Share

Asfak

Partner

23 Points Posted on 24 February 2012

We have just started a software company as LLP in Jan '12. We have even got service tax code (this was necessary as payment gateway had made prerequisite condition), IE code etc. 90% of income is from out of India. In this year, income expected is 4-5 lacs from foreign income (all documents, FIRC available), and 40-50 thousand from India. But from next year, gross foreign income may go upto 30-40 lac, and indian income 7 - 11 lac. There are few queries regarding the service tax applicability.

1. Do i have to pay service tax this financial year just because I have already recieved service tax code. This was said so by my local tax consultant. "you have to pay once you are registered even if your income is penny'

2. My foreign income is exempted. But will i have to pay service tax on my Indian Income even if it's less than 10 lac but gross total higher than 10 lac ?

3. In uncertain scenarion of next financial year, do I charge service tax from my Indian customers ?

Replies (4)

adamya

Consultant

66 Points Posted on 25 February 2012

you have to charge and pay service tax from the day you got registred

however for payment gateway any legal identity document would have been worked but now it late to discuss that.

Asfak

Partner

23 Points Posted on 25 February 2012

Originally posted by : adamya
	you have to charge and pay service tax from the day you got registred however for payment gateway any legal identity document would have been worked but now it late to discuss that.

So far we have just started dollar account, and yet to start indian payment next month. so do i have to pay nil return for this month ? or do nothing ? I recieved registration last week.

Prasad

Sr. Manager

625 Points Posted on 02 March 2012

Asraf

The service tax is payable by you after completion of service and not payment. if you have completed the work the invoice needs to be issued within 14 days after completion of service.

There is no NIL return payment. If there is no service tax payable no payment to be made, but to be disclosed in your returns

OFFICESELVA

Service

498 Points Posted on 03 March 2012

If you have obtained Registration, you should file ST3 Return which in your case is due on or before 25.04.2012. There is no NIL Return in the sense you should declared the export turnover in relevant columns.