Taxation of Freelance Service Provider

When you earn an Income from a ‘Service’ – Service Tax is usually required to be paid by You – the provider of service and you have to recover this tax from the receiver of such services. Add it to the total value of your service and the client has to make the payment inclusive of this tax. Current service tax rate is 12.36%. Let’s say your total billing to your client is Rs 75,000. Service tax on it shall be Rs 9270. You invoice your client Rs 84270 and Rs 9270 will be service tax collected from the client and which has to be deposited to the government.

Thanks for the reply, but in 44ADA they didn't mention Freelancing as a specified profession? But in 44AD they did mention Educational and other services, so just out of curiosity and doubt!

If you hire people and get this done, then 44ad would apply. Since this is not the situation, 44ada is apt.

Freelancing literally is not specified. But the point to consider here is that the freelancing in what subject. For instance, if related to accountancy, it is convered under profession for 44ada.

Thanks for the reply again, But my freelancing is not related to accounting/auditing. It is just like teaching or solving doubts of students in a specified subject (for example mine is Operations Management). So my work basically involves solving queries or clarifying doubts in Operations Management subject. So 44AD or 44ADA?

Accountancy was just an example to explain. As I understand, teaching is not covered under specified profession to opt for 44ada. Also 44ad is for business and teaching in your case is not a business.

So ITR 3 would be the ideal form I think

But for filing ITR 3 we need to upload the BS, P&L A/C, Depreciation schedules etc right? Or just leave them blank?

I am a Chegg subject matter expert in accountancy should I choose 44ad or 44ada. I am a CA article trainee.

As suggested earlier it is better to opt for 44ADA and file ITR3