01 December 2015
My Company in India provides manpower service to a company located in Singapore. Manpower sits in India and work for Singapore Company. Salaries and other expenses are paid by Indian Company. Indian Company Charges Fee for such service from Singapore Company. e.g Invoice Amount (10.80 Lacs)= Salaries (10 Lacs) + 8% on 10 Lacs(Services Charges) Directors are Common in both entities. My Query is : Whether Service Tax Leviable or It is exempt as per Rule 3, POPS, 2012 or it is export?
Read more at: https://www.caclubindia.com/experts/modify_message.asp?entry_id=1035105
02 December 2015
Yes, the services would be export of service under Rule 3 of POPS as the contractual obligation to receive the services and payment of consideration is on the foreign company. The location of employee is not relevant.
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