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I have started as an independent IT consultant recently. Since I will be way below the 10 lacs exemption bracket, do I need to have Service Tax Number?

Also is it mandatory to get this number and have it in your billing format, even when I do not have a tax liability? (Total billing this fiscal year would be around 8.89 lacs only)

MrChrister
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Wishwajeet
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3 Answers3

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The discipline of "computer software engineering" is exempt from Service Tax. So if you are in software industry, you need not worry about it.

More information is available at the Government Website

A CA will be able to advice you better at nominal rates of Rs 2000 to Rs 5000.

Dheer
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Software consultancy is NOT exempt from service tax when services are rendered within India. But in your case, you don't need a service tax number as the billing is less than Rs 900,000 in one financial year. Note:

  1. you will start charging service tax after Rs 1000000 only.

  2. you need to apply for Service Tax Number when your revenue is more than Rs 900000.

  3. Once you have the service tax number, you need to charge service tax in next financial year onwards (My CA said that so I kept it less than Rs 900,000.)

Nitin G
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Software Consultancy is not exempted from levy of Service Tax.

However, in your case you can make use of the Small Scale Exemption i.e. Service Providers whose total value of services provided or expected to be provided during the year is less than 10 lakhs can claim exemption from Service Tax and are therefore not required to apply for a Service Tax Number.

Karan Batra
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