Consultancy received from us (Service Tax)

This query is : Open

( Author )
29 May 2012

My client receiving Rs 2.5 lacs from US as consultancy.

My Queries are:
1. Wheteher he need to pay service tax in India on this .
2. whether he need to obtain IEC Code

SAIBAL

( Expert )
30 May 2012

Dear Mr.Jain

1.Service Tax is exempted up to Rs.10.00 Lac.
2.The question of obtaining IEC not arise.

If you feel that your's customer can earn more than Rs.10.00 Lac this year then you should advice him to take S.Tax Regn.and after crossing of of Rs.10.0 Lac he shoud have paid S.Tax.

Now the question is where he provided the service if he provides it in abroad the question of S.Tax does not arise or it will not enter in his 10.0 Lac yearly exemption limit but if he provides the service within India it will be included in the 10.0 Lac.

Best.

SAIBAL

( Expert )
30 May 2012

Dear Mr.Jain

1.Service Tax is exempted up to Rs.10.00 Lac.
2.The question of obtaining IEC not arise.

If you feel that your's customer can earn more than Rs.10.00 Lac this year then you should advice him to take S.Tax Regn.and after crossing of of Rs.10.0 Lac he should have paid S.Tax.

Now the question is where he provided the service if he provides it in abroad the question of S.Tax does not arise or it will not enter in his 10.0 Lac yearly exemption limit but if he provides the service within India it will be included in the 10.0 Lac.

Best.

vipin Kumar Jain

( Author )
30 May 2012

If he is providing services from working in India to the person siting in US.

will it be treated as export & it is exempt.

Do we need to file Service tax return claiminh that turnover as exemt? If so what is the notification No. to claim exemption.