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Export of business auxiliary services: whether taxable?

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This query is : Resolved

yashsr (Querist)

27 July 2012 If a service provider in India is providing taxable services(under the head Business Auxiliary Services) to a party in US and receiving the payment in US Dollars, is this taxable or exempt? And under which Rule/Section?

Please base your answer after taking into account the several recent changes made in Service Tax from the recent budget and recent notifications, if any.

RENGARAJ R.K

RENGARAJ R.K (Expert)

29 July 2012 Please see the following rulings for claiming exemption under place of provisions.

* Service provider is located in taxable territory;

• Service recipient is located outside India;

• Service provided is a service other than in the negative list;

• Place of provision of the service is outside India; and

• Payment is received in convertible foreign exchange.

If you are satisfying all the above you are not taxable, please. This is the latest position.

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