Hello
I'm an independent IT service provider and I raise invoices every month. I understand that I'm responsible to pay 12.36% service tax. My question is that in addition to this 12.36% ST, will I be paying 30% towards income tax as well? Thanks for any information.
Regards
Prasad
Dear Mr Prasad
Yes it is your responsiblity to pay the service tax @ 12.36% provided, your service value is above RS 10.00 Lac per annum. Also you have to pay Income Tax and on the Income earned by you subject to deductions. You are not clear in your query ehether you are running a consulting firm and not clear it is proprotietory or partnership.Consult your nearest Chartered Accountant for more details.
( Jayam Ramesh K C)
Hello Jayam Ramesh
Thanks a lot for your reply. I'm registered under "proprietorship" and I'm registered as an independent service provider (just one individual). I had to do this as my employer is not yet ready to take me under his payroll. So, in essense I will end up paying 42.36% net taxes (30% Income Tax + 12.36 Service Tax). As per your suggestion, I will approach a local CA for my needs.
Thanks Again!
CAclubindia
