Hello Team,
We have started a small-time consulting company mainly focusing on recruitment services, and we have acquired a few overseas clients. We have successfully placed individuals overseas under a basic agreement where we do not charge any service fees.
Do we need to pay any service tax on the funds received from overseas? Is overseas income taxable? Please help.
Regards, Ram.
From United Arab Emirates, Dubai
Acknowledge(0)
Amend(0)
We have started a small-time consulting company mainly focusing on recruitment services, and we have acquired a few overseas clients. We have successfully placed individuals overseas under a basic agreement where we do not charge any service fees.
Do we need to pay any service tax on the funds received from overseas? Is overseas income taxable? Please help.
Regards, Ram.
From United Arab Emirates, Dubai
Acknowledge(0)Amend(0)
Hi, I believe yes. As the services are rendered in India it is a taxable service in service tax. Warm Regards, Ca Vikas Goel
From India, Mumbai
Acknowledge(0)Amend(0)
11From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
If they are really to pay service tax, then charge on the gross amount. If not, then pay on the net amount. For example, if the consultancy fee is Rs. 100 and they are willing to pay, then it would be 100 + 10.3 (service tax) = 110.30 on the invoice. If they are not willing to pay the service tax, then the consultancy fee would be 100/110.30*100 = 90.66, and (100 - 90.66) = 9.33 would be the service tax payable by you.
Warm Regards,
Ca Vikas Goel
From India, Mumbai
Acknowledge(0)Amend(0)
If they are really to pay service tax, then charge on the gross amount. If not, then pay on the net amount. For example, if the consultancy fee is Rs. 100 and they are willing to pay, then it would be 100 + 10.3 (service tax) = 110.30 on the invoice. If they are not willing to pay the service tax, then the consultancy fee would be 100/110.30*100 = 90.66, and (100 - 90.66) = 9.33 would be the service tax payable by you.
Warm Regards,
Ca Vikas Goel
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.