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Low Cost Software DevelopmentWe have evolved a simple, practical and transparent costing model, which truly reduces down our client’s software development cost.
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Service Tax
It is a tax applicable on service provider who has to charge this tax from their customer and deposit it to the Income Tax Department. It is 12.36% of the service cost. If company cost is 1000 USD them we will charge you 1123.6 USD out of which 123.6 would be deposited to the department. Good news is that service tax is exempted on all exports at present. As we are registered with Director General of Foreign Trades, India so service tax is not applicable for us. Service Tax on INFORMATION TECHNOLOGY SOFTWARE SERVICESThe service Tax is applicable on INFORMATION TECHNOLOGY SOFTWARE SERVICES as per the Notification No. 18/2008- S.T., dated 10.05.2008. It states that all such services are subjected to service TAX but exports is an exception. Cir.No. 56/5/2003-ST Dated:25/4/2003Sub:- Non levy of service tax on export of services - RegardingThe Central Government has issued Notification No.2/2003 dated 1/3/2003 in the current year's Budget rescinding the earlier Notification No. 6/99 Service Tax dated 9/4/99 which exempted taxable services from payment of service tax so long as payment for services rendered is received in convertible foreign exchange which is not repatriated outside India. Consequent to the issue of Notification No. 2/2003 cited above, service tax would be leviable on all taxable services consumed or rendered in India, irrespective of whether the payment thereof is received in foreign exchange or not. In this regard various representation have been received by the Board raising apprehension that because of the withdrawal of the notification No. 6/ 99, export of service would be affected as it would be costlier in the international markets. |
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