13 June 2012
An Indian friend of mine is running AdSense on his websites and his earnings are over 10 Lakhs which is the limit for exemption under Service Tax rules in India. He said the services are export of service since he is providing the service to Google USA (receiver of service), that he receives his earnings in USD (fully convertible foreign currency) and that his web server is located in the US (place of providing the service). Export of Services are exempted and hence he says he does not pay any service tax.
CAclubindia
