Venkatesh
Director
[ Scorecard : 55]
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Posted On 18 October 2010 at 07:30
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Dear All,
We are providing IT staffs across India and performing services. We got an opportunity to service to an overseas client in Saudi and we plan to send out IT staff there.
1) I want to know, if I raise Invoice should I charge service tax of 10.3% as I do in India or not required
2) Whether I have to deduct Income-tax from my employees. I have to pay in dollars for their expenses at saudi ( Food,accommodation & local transport) in USD. How these expenses can be accommodated without tax?
3) Whether my company have to pay Income-tax on the profit out of this transaction ?
Any tips to reduce / avoid taxation as all my receivables are in dollars.
Thanks to all in Advance
venki
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Madhukar N Hiregange
Chartered Accountant
[ Scorecard : 15734]
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Posted On 18 October 2010 at 08:55
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Originally posted by : Venkatesh |
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Dear All,
We are providing IT staffs across India and performing services. We got an opportunity to service to an overseas client in Saudi and we plan to send out IT staff there.
1) I want to know, if I raise Invoice should I charge service tax of 10.3% as I do in India or not required
2) Whether I have to deduct Income-tax from my employees. I have to pay in dollars for their expenses at saudi ( Food,accommodation & local transport) in USD. How these expenses can be accommodated without tax?
3) Whether my company have to pay Income-tax on the profit out of this transaction ?
Any tips to reduce / avoid taxation as all my receivables are in dollars.
Thanks to all in Advance
venki
Dear V,
There is no ST since the service is provided and recived outside india and I presume the amount is recived in convertible foreign exchange.
As far as Income tax quesries pl post under IT.
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Total thanks : 1 times
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Harpreet
* * * * * *
[ Scorecard : 1606]
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Posted On 18 October 2010 at 11:45
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CA Ruben Balooni
Professionalism ™
[ Scorecard : 1292]
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Posted On 18 October 2010 at 14:41
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Service tax is levied only if service tax (finance act,1994) is applicable at the place where the services are being rendered.
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Janani Subramanian
student
[ Scorecard : 129]
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Posted On 18 October 2010 at 18:17
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as per the notification no 06/2010 dated 27th Feb the the terms services provided in india and used outside india is deleted if u receive foreign curreny for the services you render you need not pay service tax.....
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Mayank Tulsyan
CA FINAL, B.COM(Hons)
[ Scorecard : 203]
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Posted On 19 October 2010 at 02:01
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service tax is charged on destination principle... SO no tax if a taxable service is exported .. as the destination is not INDIA.
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sajay kumar
IPCC STUDENT
[ Scorecard : 162]
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Posted On 20 October 2010 at 18:48
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leavy of service tax is purely based on destination princeple.. where ever our service tax act (bill) is applicabe there only service provided is taxable.eg:our service tax act(bill) is not applicable to jammu n kahshmir so service provided there by us is not taxable
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