Service Tax for a Domestic Project

Hi ,

 1. Ours is a Software Company which develop software and give consultancy services to foreign countries?

Is this applicable for Service Tax?

2. We got a Domestic Project , Same service we are doing.

   Do we need to register for Service Tax?

   My auditor told if ours sales exceeds above 10 lakh for domestic project we need to pay service tax 10.3%?

   Is this true?

Replies (2)

export services are exempted from service tax.

for domestic service if  taxable services provided in a financial year exceed 9 lakh then entity need to apply itself for service tax registration and once the taxable service in a financial year exceed 10 lakh then it is liable to pay for service tax.

dear Soumya,

 

Providing Software services is covered under Information Technology Software Service under service tax. As far as providing the sofware service to the customer outside India, the same is exempted from Service TAx.

But if you are discharging the service domestically then in that case what your auditor have said and what Rachit have said above would apply.

Therefore you need to look after your annual turnover to be covered under service tax net.

 

Regards

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