Service Tax Question

[Viren Verma]

Hi,

I'm starting a website designing and developing proprietorship. I just wanted to confirm Website Design is liable for service tax under 'Design Services' and Website Development is liable for service tax under 'Information Techonology Software Services', right? Secondly, can I charge my clients for the service tax? Add it as tax to the final bill so that they cover the tax. Is that legal? Finally, I've signed up for service tax, if I turnover is less than 10 lakhs, I have to file for NIL right? and Lets say I cross the 10 lakhs turnover, the service tax only starts from the revenue after the 10 lakhs turnover right? So I can start charging my customers after I cross the 10 lakhs turnover instead of right now itself.

One more thing, most of my income is received through paypal to my bank account and it's usually in USD and converted to INR by paypal itself. That's not a problem right?

AI Summary

Service Tax Applicability on Website Design and Development: Legal to Charge Clients and Filing Requirements Explained An individual starting a website design and development business inquired about the applicability of service tax on these services, questioning whether website design falls under 'Design Services' and development under 'Information Technology Software Services.' They asked if it is legal to charge clients for service tax and add it to the final bill. They also sought clarification on filing requirements if turnover is below 10 lakhs and when to start charging service tax if turnover exceeds this amount. Additionally, they asked if receiving income through PayPal in USD, converted to INR, poses any issues. The response requested resubmission due to readability issues.