Service tax for software consult. service to foreign company

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Tripathy

Proprietor

40 Points Posted on 05 April 2012

I am a Software Professional providing software consulting services from India to a Foreign Company. I provide my services(consultancy and software development) over internet from my home and hence and I am physically present in India. I get paid consulting fees in the name of my Sole Propreitorship Business in foreign currency.

1) Since this service is being provided to a foreign company, will it be exempt from Service Tax?. It used to be exempted according to 2005 notification, has this changed due recent changes to service tax rule and declaration of negative list of services

2) Do I need to register for Service Tax and get a ST number? Note: My income is more than 10 lacs per year.

Thanks in advance for your help.

Replies (2)

Devendra

Chartered Accountant

3769 Points Posted on 06 April 2012

If you are providing Consulting Servies to only Foreign clients, then there is no need to get your self registered under Service Tax as Export Services are exempt from Service Tax. But if your consulting to clients in India also, then you will have to get registered under Service Tax as your Gross Receipts are already above Rs. 10 Lakhs.

Regards,

Devendra Kulkarni