I work from home and I am a self-employed professional with two clients.
1) The main client is a UK based charity/NGO. They don't have any office in India and I get paid directly by them. No taxes are deducted by them. The NGO helps strengthen universities in developing countries in Africa, Asia, and Latin America. They are funded by international development agencies, and all their activities are of a non-profit or charitable nature. My work is mostly in the area of e-learning. I manage an online e-learning system and I develop and teach online courses on it. I occasionally travel out of India to conduct workshops at universities or attend conferences. I bill the NGO every month for my work on the basis of an hourly fee, and they wire transfer the amount.
Just wanted to add that I bill the NGO in UK pounds and get paid in pounds. The money comes to me in Rupees in my bank account here. So it's a foreign exchange payment. I receive payment receipts from the NGO from their UK bank and the amount mentioned is in pounds. Only when it comes to my Axis Bank here do I know what the Rupee value is. Also, I am a direct provider of services to NGO and not an intermediary. I carry out e-learning, planning, and other activities from my home here. The NGO is a registered charity (or NGO) based in Oxford, UK. They do not have offices anywhere else.
2) My second client is a Private Limited Company in Mumbai. I am involved in knowledge building activities with this Company.. I get paid a monthly retainer fee from them. They deduct 10% TDS and their payments to me show up in my Form 26AS online.
Please let me know implications under Service Tax in the above examples assuming the turnover crosses the threshold limit in both. Any chance these education activities are covered in 'Negative List'?
CAclubindia
