Digital marketeers provide digital marketing services to their customers. When they make their invoice they get confused about charging service tax from the customers. If the answer is yes, then how much they should charge? We all have noticed that the hosting and domain companies are charging 15% more. So should digital marketeers charge 15% service tax from the customers in and outside India?
According to the government law, if any company is providing their services outside India then they need not to pay any service tax to government. In case of India, charging service tax is not compulsory up to an income of 10 lakh. So it is not a mandatory option to charge any service tax from your clients. If you do not charge it from your client then you need to pay it from your pocket.
In 2016, the service tax which needs to be charger was 12.36% and the finance minister had increased the service tax from 12.36% to 14% and after sometime the Swach Bharat cess had increased the tax about 0.5%. In the month of November, the Krishi Kalyan Cess also added 0.5% tax. So after all the calculation, the total amount of tax that needs to be charged from your clients is 15%.
If you are a digital marketer and you are confused about charging taxes from your clients then we have an answer for you. You need to charge 15% of service tax from your clients because if you do not charge service tax then it will be your loss only. You can also consult with your local Chartered Accountant (CA) for better understanding. He will tell you the exact value of service tax that you can charge from your clients.