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 ?
CAclubindia
