What Tax?

What tax should a company pay which is engaged in the business of providing counseling service to students who want to pursue  higher studies in Universities abroad?

Replies (3)

 

1.      It has to pay Income tax since income is earned in India. Under income tax, the category applicable is income from business or preofession.

      It has to deduct TDS on payments made to Vendors (other than on supply of goods)

2.      It should pay Service tax (Register once amount received towards services exceeds Rs.9 lakhs and pay tax once Receipts exceeds Rs. 10 lakhs)

Thanks.But I cant understand the 2nd point regarding Service Tax.

Certain services are taxable under the service tax act  and one of them is counselling or coaching services which will be provided by you. When your receipts reaches Rs 9.00lac you have to apply for Service Tax Registration for getting Service Tax Number.

Service Tax is not your actual liablity. You would have to collect it along with the fee charged by you from the students and deposit the same with the Government. 

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