I am an independent software consultant running a sole proprietorship business. My sole proprietorship business is registered for service tax.
My client, a software company, is exempt from service tax by virtue of their office being in the SEZ zone. They have provided me with Form A1.
My understanding from what the client tells me is that since they are exempt from service tax, and I am not receiving any service tax from them, I too am exempt from service tax to the extent of the income I receive from them, and I have to simply mention the fact and attach their Form A1 that they have provided me.
Is this correct? Am I also exempt from service tax to the extent of the income I receive from them?
