What do I owe
Hello,
Thank you in advance for helping me.
I am an online freelance graphic designer and I have a few Filipino employees. I do freelance designing for candidates from the US and Europe. I have full control over the pricing of the designs. I am a sole proprietor and receive payment of let's say $2000 a month in my paypal account.
Here is what happens after that:
=> Paypal deducts it's charges and then the amount in USD transfers to my bank
=> My bank performs a currency conversion (USD to INR)
=> After a month I pay my Filipino employees which means INR is converted to USD from the funds in my credit card.
=> This is then loaded into my paypal and I send them lets say $1500
My question is:
Am I liable to pay service tax since my income is from outside India and I have full control over pricing?
If yes, then Am I liable to pay service tax on the revenue that I received in my bank account ($2000) or am I liable to pay for revenue plus the expense ($3500)?
Thank you for your answers