Dear sir, One of the American company importing goods from other countries(not from India). We are the Indian company organizing the shipping services through a registered shipping company in India. Indian shipping company raise invoice on us in USD or in Indian rupees, as per their company rules. In turn we raise invoice on American company with margin, in USD. Kindly let me know the tax implications ( service tax, income tax & TDS) on this transactions pl.
08 October 2014
Dear Sir, As per my view for service tax, No need to pay service tax as it is an export of service. You are providing services out of india and the customer also from out side india, The consideration you are receiving from the american company is in foreign currency, therefore it constitute as export of service. No service tax is leviable.As per rule 6A of service tax rule all the factors under sub-rule (1) (a) to (f) is complying in this case. therefore it is clearly export of service.
08 October 2014
thanks sir for your reply. please let me know further that whether any tax implications arise for mediatory company and indian shipping company, in the sense indian shipping company providing services to mediatory company.
CAclubindia
