We have provided Consultancy Services outside India (at Indonesia) to a Indonesian Company. We are getting 700 USD per day for 8 days Consultancy Services.
I would like to ask what is our Service Tax libility for the same. How do we bill for it.
07 April 2012
I think you are not liable for service tax in your case. Services provided in the exempted are service tax would not be attracts. For example if services provided in the state of Jammu & Kashimer in India is exempted to pay service tax. Like that services provided outside India and the remuneration is receivable in the convertible foreign exchange are exempted to service tax. As per the rule 4 of the export of services rules,2005 if a service falls within the meaning of export of service under rule 3, then it can be exported without payment of service tax.
To get this exemption one should be satisfy the two conditions Condition 1: the service should be as per the Rule3(1) and Condition 2: as per the Rule 3(2)(b) the payment for the services which are exported in terms of Rule 3(1) should be received in convertible foreign exchange.
I think you are confirming service provided outside India so it covers under Rule 3(1) and also you satisfied Rule 3(2) so you are exempted from payment of service tax. So no need to collect service tax. OM SAI SRI SAI JAI JAI SAI
CAclubindia
