Chargeability of verious taxes in case of export ?

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CA Siddesh Jagdale (Querist)

01 September 2013 We are a Software compny, & Applicable MVAT & Service tax on our product.

Now we want to bill Out of India, So we need to charge any tax? or pay any export duty?

Thanks in advance

RENGARAJ R.K

RENGARAJ R.K (Expert)

01 September 2013 As per Notn 36/2012-ST if you are covered in the following category, it will be considered as export services and hence there is no service tax or duty.

RULE 6A. Export of services.- (1) The provision of any service provided or agreed to be provided shall be treated as export of service when,-

(a) the provider of service is located in the taxable territory ,

(b) the recipient of service is located outside India,

(c) the service is not a service specified in the section 66D of the Act,

(d) the place of provision of the service is outside India,

(e) the payment for such service has been received by the provider of service in convertible foreign exchange, and

(f) the provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 2 of clause (44) of section 65B of the Act

(2) Where any service is exported, the Central Government may, by notification, grant rebate of service tax or duty paid on input services or inputs, as the case may be, used in providing such service and the rebate shall be allowed subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification.”

CA Siddesh Jagdale

CA Siddesh Jagdale (Querist)

01 September 2013 yaa m a aware about Rule 6A, want to know about other applicable taxes...

RENGARAJ R.K

RENGARAJ R.K (Expert)

01 September 2013 other applicable taxes?? can you brief me what exactly it means.

CA Siddesh Jagdale

CA Siddesh Jagdale (Querist)

01 September 2013 It means State level taxes MVAT, or export duty etc?

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