How to save the Income tax
Raghav
(Querist) 28 February 2011
This query is : Resolved
Dear Sir,
Now one entity has income tax / service tax exemption under the STPI Scheme till 2010-11 who export the software outside India.
From 2011-12 this exemption is not valid as the period for such scheme not extended by our government.
I need two clarification as follows:
1. I have to know from 2010-11 does he need to pay the service tax on export along with the income tax?
2. How does he work so that he may take the maximum tax benefit because suppose income is 1 crore and the tax will be 40 lacs.
Please suggest me the same.
A V Vishal
(Expert) 28 February 2011
1. I have to know from 2010-11 does he need to pay the service tax on export along with the income tax?
Ans. Service Tax is not attracted on exports.
2. How does he work so that he may take the maximum tax benefit because suppose income is 1 crore and the tax will be 40 lacs.
Ans. He can go into the SEZ scheme for another 15 years.
Raghav
(Querist) 01 March 2011
Dear Sir,
Thanks to you.
Since we are doing outsourcing job and we are rendering services (Software) non the less does service tax not applicable?
Kindly suggest me the same.
A V Vishal
(Expert) 01 March 2011
IF THE OUTSOURCING IS IN THE FORM OF EXPORT SERVICE TAX IS NOT APPLICABLE.
