Billing and Service Tax

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S. Anand (Querist)

07 May 2009 Dear Sir,
We are to provide laiason and logistic support services for a foreign company.
a) Can we raise an invoice in USD to the foreign company.

b) Is service Tax @ 10.3% applicable.

Regards
S. Anand

Sreenath

Sreenath (Expert)

07 May 2009 Export services are exempted from sevice tax in India

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

07 May 2009 a) Yes.
b) If such services are provided from India and used outside India AND payment of such services are received by the service provider in convertible foreign exchange then such services are called EXPORT OF SERVICES. Accordingly, if your case satisfies the above conditions,being an export of service you may export without charging/paying service tax.

S. Anand

S. Anand (Querist)

08 May 2009 Dear Sir,
Thank you very much.
to put in a more elaborate manner:

a) We are entering into an commission agreement with a foreign company X.

b) X Company which out of country has to supply certain materials for the purpose of installation to Y company in india.

c) We are to take care of support services regarding logistics, payment, etc... on behalf of X company in india.

d) Invoice will be raised on X Company by us.

MY QUERIES ARE:
1) Can we raise the invoice in Foreign currency.

2) Is service tax applicable.

3) Will X company deduct tax and pay the balance while remitting the amount to us.

Regards
S. Anand

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