Disclaimer :
The information provided here may be outdated or incorrect. The tax rules are revised every year in annual budgets. Please consult your CA for latest regulations and norms.
What is Service Tax
In India service tax is applicable on certain businesses/firm if its annual revenue exceeds 10 Lakh Rupees. Current rate is 10.30% (at the time of writing this article). Its not applicable where VAT is applied.
Service Tax is applicable in IT sector and on software firms and freelancers whose annual revenue exceeds the limit. The annual revenue includes both foreign and local income. So if the total of foreign revenue and local revenue exceeds the 10 Lakh limit then the firm is supposed to apply for a Service Tax number.
Service Tax only on INR revenue
However Service Tax or S.T....