Is service tax payable for development service to foreign clients
I work as freelance webdeveloper working from Home and I have all my clients outside India.
Basically there are two different types of work I perform:
I use to sell my softwares on Australian Based Digital Marketplace named Envato (www.envato.com). My softwares are listed on Envato Marketplace and customers from all over the world download the application from that marketplace. Envato charges some commission say 50% and after deducting commission sends the payment to my account via Paypal which gets converted to Indian Currency & then credited to my account.
Secondly, I use to code software for my direct clients and they pay the charges in foreign currency by Paypal (www.paypal.com) which gets converted to Indian Currency & then credited to my account.
I have gross income over 10 Lac and registered Partnership firm (with my brother) and have Service Tax registration No. Initially, I didn't have any knowledge of "Export of Service" therefore I registered my Partnership firm for Service Tax Registration No. Later, I realized that my work should come under "Export of Service" and I need not to pay service tax as mentioned in the "Export of Service" terms.
I had a talk with my CA but he was unable to understand the case. Therefore I decided to contact you and clear my confusion about this "Export of Services" that is Service Tax payable on my services or not.