I need service tax advice for my it / software firm

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Hello,

I own a small IT firm. It is registered as patnership firm in andhra pradesh. We had clients from both India and abroad. I want advice regarding service tax applicability on services we provide. following were complete services list we provide:

1. Domain Names

2. Hosting (cloud, shared, email)

3. Software Development

4. Software Products (we have many software products for retail, payroll, school etc, we licences)

5. Web Designing

6. Logo and Graphic Designing

7. SEO (search engine optimization)

8. Social Pages Maintanence

9. Campaigns (we run campaigns for our clients on google, facebook. We are collecting our service fee and campain spends were paying by clients. If we collect whole amount, do we liable to pay service tax?)

10. Bulk SMS

11. App Development

At present we were having sales of INR 7,00,000(for this financial year). Not yet registered for service tax. Please give me complete info regarding this. Do I need to take service tax registration only or any others also?

Thnq in advance.

 

Replies (7)

Apply for registration under service tax once your gross receipts exceeds Rs.9 Lakh, within 30 days of turnover exceeding Rs. 9 Lakhs.

We give advice to IT software related CO., we have a branch office in bangaluru, you can contact us for advice at gadlyshaw @ gmail.com
Right. Pls apply for service tax once your gross receipts exceeeds 9 lakh within 30 days.

Do I need to pay service tax for all of my services? I have read on some articles that there is no service tax for domain names and hosting.

You have to apply for service tax registration within 30days from the date on which your total turnover exceeds Rs. 9 Lac. But you are required to pay service tax after you cross the limit of Rs. 10Lac.

For every year you dont have to pay service tax until your total receipt exceeds 10 lacs provided in the immidiate earlier year total receipts shouldn't exceed 10 lac.

eg. if for py 2014-15 turnover below 10 lac then in py 2015-16 you can claim benefit up to 10 lac .

But if for py 2014-15 turnover exceeds 10 lac then you get no benefit of threshold limit in  the year 2015-16. That means you will have to pay service tax even if your t.o. is any amount. 

 If You are providing services like providing Data or Information,retrievable or otherwise,to any person in electronic form through a computer network.Then POPS rule 9 states Place of taxation is location of service provider i.e in India hence Taxable.But since you have not crossed the limit of 9 lakhs Turnover condition you can claim SSI exemption as of now.smiley

thanks all for the valuable info.


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