Do i have to pay service tax
This query is : Resolved
08 August 2012
Hi,
We are a Mumbai based company and we work for a company based in USA to help them locate call centers and perform all the quality checks on a regular basis.
For this service we get paid a commission by the company is USA.
We basically try to provide any service that we can to ensure that our client in USA is happy and the quality is maintained.
I'd like to know if we have to pay service tax since we invoice the client in USA and we get paid in Forex by them.
We dont have any payments from the Indian call centers.
Any help in this regards would be great and any references would be nice.
We are a Mumbai based company and we work for a company based in USA to help them locate call centers and perform all the quality checks on a regular basis.
For this service we get paid a commission by the company is USA.
We basically try to provide any service that we can to ensure that our client in USA is happy and the quality is maintained.
I'd like to know if we have to pay service tax since we invoice the client in USA and we get paid in Forex by them.
We dont have any payments from the Indian call centers.
Any help in this regards would be great and any references would be nice.
08 August 2012
Refer place of providing of services rules. notification 28/2012. You need to pay the service tax
08 August 2012
Is there any way we could structure the company so that we dont have to pay the service tax?
Any type of contracts, since the clients in USA are flexible enough to work with us to avoid this.
Paying a service tax would basically eliminate most of our profits since we have about 12% margin so far post other taxes and expenses.
Any type of contracts, since the clients in USA are flexible enough to work with us to avoid this.
Paying a service tax would basically eliminate most of our profits since we have about 12% margin so far post other taxes and expenses.
08 August 2012
Provider of services is located in India and Recipient of service is located in non-taxable territory and payment will be received in foreign currency. It will be export of service and service tax will be exempt from export of service.
08 August 2012
I beg to differ. the order of rules say that the service is provided from within India. Rule 9 suggests that it is taxable in India. (Divide of opinion is always welcome)
08 August 2012
This is exactly the reason why I am looking for a clarification on the matter. I got conflicting opinions from two CA's and now I am doubt what applies.
Anyone else who can chime in and shed some light to this matter?
Anyone else who can chime in and shed some light to this matter?
08 August 2012
Yes. Contact the Service Tax officer / Superintendent of your jurisdiction. Currently they are on the drive to collect new and new assessees.
12 August 2012
Hi,
I am sure there are a bunch of companies like call centers, software services companies, lead generation companies etc, who will be having the same issues as I am.
Hence the reason for keeping this issue as open. I want to get more responses from people who have experience in this regard.
Thanks for the responses so far since they've definitely been helpful.
I am sure there are a bunch of companies like call centers, software services companies, lead generation companies etc, who will be having the same issues as I am.
Hence the reason for keeping this issue as open. I want to get more responses from people who have experience in this regard.
Thanks for the responses so far since they've definitely been helpful.
14 August 2012
In fact, I feel with such issues, we all will come to know the LATENT feelings of GOVT in changing the service tax. One thing is sure, Govt wants to bring everything under the service tax NET.
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