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?

[YAGAY andSUN]

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AI Summary

Service tax liability for website design and development: classification, invoicing, registration threshold and cross-border receipts clarified. Whether fees for website design and website development attract service tax is raised, linking website design to Design Services and development to Information Technology Software Services. The inquiry asks whether service tax may be added separately to client invoices, and whether a proprietorship must file nil returns while turnover remains below the registration threshold and only begin charging service tax after exceeding that threshold. It also asks whether PayPal receipts converted to domestic currency affect service tax treatment.