Service tax on animation services

Pranay Parmar (Accounts and Taxation) (57 Points)

05 April 2016  

Dear Sir/Madam,

A group of Individuals (herein after referred as company A) have started providing service of Animation on contract basis Located in India. They have entered into the contract with the company herein after referred as company B) which is located outside India and they are receiving payment in dollars.

The animation which is prepared by them ( Company A) is being uploaded in the site of the company in India (herein after referred as company C). The telecast of that animation is being done in India only.

The question is :

1) Will this services be considered as Export of Services ( as the contract is with the company outside India)?

2) Will such services will fall under the regime of Indian Service Tax and hence service tax payable on it?

Please advise.

Thanks and Regards,

Pranay Parmar.