I am providing SEO services to my overseas clients from India since last few years. I also do affiliate marketing, site flipping, etc. I have a sole proprietorship firm registered and am paying income tax as per the rules. My clients pay me mostly via Paypal in foreign currency and the money reaches in my business account in bank in Indian Rupees. Paypal has my PAN card in their records and currently I am withdrawing the money from PP under "Software consultancy" purpose code. But I am not sure what kind of income it is actually which freelancers and small SEO companies like us are getting from abroad and what should be the correct tax treatment for it. Should we register the firm under service tax if it is a service? Or should we get a export license if its export of services? or VAT? I read somewhere that tax is exempted on export of services in India. Are we eligible for that? Someone on another thread pointed out that firms registered under SEZ are exempted from any tax for 5 years but I have no idea how it works. I am not sure what should be the best accounting option for me. My current receipts are about 11L and profits are like 2.5 Lakhs annually as per my last ITR and its growing each year. So I need to know how should I do it correctly from now onwards so that its convenient in long run if the business grows more and more from here. Can anyone of the Indian friends here give some advice on this please?