Software development income from foreign

Tax queries 430 views 2 replies

dhanisha

article

35 Points Joined June 2011

what are the things to be followed under income tax, service tax and any other tax other regulation acts to run a proprietor business taking software projects form foreign countries and getting payments from foreign through bank transfers.
the turnover of the business likely to exceed 25lacs pa.
what would be the consequences to be faced if there is no registration under service tax and filing no IT return for past 2 years

Replies (2)

Prakash

Chartered Accountant

560 Points Joined September 2011

There will not be problem with Service Tax Department, as Software export exempted

As, exempted Service no need to get Registration too

But, you have to clean up your end from Income Tax angle, though proprietary concern

You can file Belated returns now for the last two years, Prepare financials of Bisiness and Pay tax

Though it is 100% EOU, Exemption of 10B not available to you, as you need to get the approval as 100% EOU to claim that, its been so late now

From this Financial Year No such exemption to others too

Aces Joanh

600112

30 Points Joined September 2011

Hi ,

I too am starting a new software export firm.

@ Prakash -

From IT point of view , what are the documents that I need to maintain things perfecty clear.

Since my work is database processin , there would be no proof of work done or source of Income.
Only the Bank account statement of the transfer.

Prepare financials of Bisiness and Pay tax
To put it in a basic form , My Entire Revenue is service tax free - then minus som allowed expences would be my Net Income. I categorise it as Income from other sources and pay the 30%.

Please do share your opinion.

Thanks

Aces Joanh