The very basic information: if your turnover is less than 10 lakh Rupees (Rs. 10,00,000) you do not need to charge Service Tax to your clients, thus you don't even need to have a number for it, i.e. you don't need to register yourself for this purpose.
But I was gladly surprised to discover some time ago that even if your total turnover is great than 10 lakhs you may still not need to charge Service Tax! And it all depends on what services you are providing.
There are certain services that according to the fiscal law they are not liable to Service Tax, thus if you are providing those services, you (and your clients) need not worry about this hassle.
Even better, it could be that your company is providing more than one service, some of them taxable and others not. As long as those that are not taxable do not exceed 10 lakhs, you need not charge Service Tax.
It's important that you confirm with your Chartered Accountant that you need not register for Service Tax, and in turn, he will have to do some thorough research about this issue. Also, remember that rules change every year and something that was not taxable last year, may become taxable the next one so be careful and keep an eye on this.
Just in case you are into this business... IT services do have Service Tax. But Translations and Interpretations don't! At least for this year...
But I was gladly surprised to discover some time ago that even if your total turnover is great than 10 lakhs you may still not need to charge Service Tax! And it all depends on what services you are providing.
There are certain services that according to the fiscal law they are not liable to Service Tax, thus if you are providing those services, you (and your clients) need not worry about this hassle.
Even better, it could be that your company is providing more than one service, some of them taxable and others not. As long as those that are not taxable do not exceed 10 lakhs, you need not charge Service Tax.
It's important that you confirm with your Chartered Accountant that you need not register for Service Tax, and in turn, he will have to do some thorough research about this issue. Also, remember that rules change every year and something that was not taxable last year, may become taxable the next one so be careful and keep an eye on this.
Just in case you are into this business... IT services do have Service Tax. But Translations and Interpretations don't! At least for this year...
