Service tax liability for sole proprietorship handling expor

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Sandeep Prabhakaran

Others

24 Points Posted on 29 April 2015

Hello, I'm an individual software consultant rendering software export services to clients across the globe. Almost 100% of my services are export oriented.

My turnover exceeds 10 lakhs but is entirely foreign-based income apart from about 1lakh of interest income generated by some fixed deposits.

Do I have to take a service tax registration?
Also is a proprietorship registration with the government mandatory for all proprietorships?
Is having a current account a must?

Please help me out, thanks.

Replies (2)

Net Guru

Owner

22 Points Posted on 29 April 2015

I also have the same question. I have a proprietorship company. I develop software here in India but 95% of my clients are from outside India. So technically I export software outside India.

Our revenue is also 95% from outside India and 5% is from India. And our India revenue never crossed Rs 2 lakhs. But our revenue from overseas crossed the 10 lakhs limit for service tax.

So my question is do I need to register for Service Tax and if yes, do I need to pay service tax on my India sourced revenue once my India sourced revenue crosses 10 lakhs or I am liabe for service tax once my global revenue crosses 10 lakhs?

I am also looking for online advisory service from a very knowledgeable CA and CS in this sector.

Thanks a lot for your time.