Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: cpt :: ACCOUNTING STANDARDS :: empanelment :: TDS :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: VAT Audit :: form 3cd :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT RATES
« Service Tax »
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?
 E-way relief, for now, to e-commerce, courier firms sending small orders
 Where to invest for saving more on taxes
 A simpler GST can become a registry of all invoices, says iSPIRT’s Sharad Sharma
  Income Tax department may defend CPC in returns fraud case
 One GST rate not possible, next reform after compliance improves,

Domestic tech firms burdened after increase in service tax
March, 05th 2015

Small and medium scale IT companies, particularly those in outsourcing business, are concerned about the increase in service tax and also the Union government’s plan to impose 2 per cent Swachh Bharat cess on service. As most of the MNCs like Google, Dell, Amazon, and Yahoo have offices in India, their work is not deemed as IT exports. They thus have to pay both service tax and TDS, and also the proposed Swachh Bharat cess.

“Earlier, the 2 per cent education cess was included in the 12 per cent of service tax, but now the proposed 2 per cent Swachh Bharat cess is on the total service amount. Now after increasing the service tax by 2 per cent, medium and small IT companies have to pay 14.36 per cent of service tax, 10 per cent TDS and 2 per cent Swachh Bharat cess, which will be an additional burden. For every invoice raised domestically, service tax has to be paid even if there is a delay in client payment. If invoice is raised this has to be paid.

Previously, we could pay after the client paid and it was 10 per cent. Now we have to pay even if the client does not pay,” pointed out Rushikonda IT Park Association’s vice president O. Naresh Kumar.

He added that previously MNC used to pay in dollars and there was no income tax or service tax. Now since they have India operations they pay in rupees and service tax is applicable.

“We want that only the service part of the 1/3rd invoice value at 33 per cent of the invoice be treated as service and not 100 per cent of the value as service for levy of service tax. There will be severe cost cutting, and with heavy competition from low cost countries like Philippines, Russian block countries, China and reduced billing, there will be more work and less pay,” he added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions