Service tax exemption

Kathiravan Venkatesan (10 Points)

18 October 2016  


I have Incorporated my startup as Pvt limited company at chennai in Feb 2016. No financial tramsactions done so far and filed nill income tax.  I am developing a SAAS product (software as a service) to retailers. I am thinking to provide free subscriptttion initially after collecting a one time license fee/ registration fees around Rs.5000 by way of cash/cheque. My questions are below

1. What kind of taxes should I collect from the retailer for this payment.

2. If it is service tax, will I get exemption till 10 lakh limit per year. In that case I hope I don't need to do service tax registration

3. Should i mention the service tax exemption in the invoice or payment receipt? If yes how?

Thanks in advance