What is the different category of service tax in India?

Service Tax on Export of Software Services from India?

• I work as an individual freelancer as well as through my small Private limited Company and export Software Services out of India. In my understanding, there's no Service Tax for export of Services if 1) The services are consumed outside India and 2) receivables are in Foreign Exchange. I and my company both satisfy these constraints. However, someone recently told me that Service Tax is waived only if you are a 100% Export oriented unit, which we are not. We have a small percentage of our business arising out of India (5-10%). So, does Service Tax applies to me individually in this case (remember I export services individually as well as provide services domestically also as a freelancer) or to my company??

• Answer:

  Firstly you should decide under which category your.s services comes under Service Tax. As per my belief both of you are covered under category "Information Technology Services" Now please note that service tax is payable on gross amount of service charges excluding gross amount received against export of servicesl. It does not matter your unit is 100% export oriented unit or not. Further service charges upto 1st 10 lacs are also taxfree in both the cases.