Export of service tax

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PALLAV DAVE (Querist)

08 April 2014 A pvt. ltd. company developing software for usa based company. They providing service from india through online mode. The payment to be received in convertible foreign exchange. So I want to know that is this service fall within the ambit of export and service tax payable on it.!!! Also is this declared service or not..!!!

Sandeep Mangal Agarwal

Sandeep Mangal Agarwal (Expert)

08 April 2014 Dear Pallav ,

For a service to be treated as export , there are 6 conditions which are required to be fulfilled together.These are :
RULE 6A (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(negative service)

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 establishment of a distinct person in accordance with item (b) of Explanation 2 of clause (44) of section 65B of the Act.

If any of the condition mentioned above is not fulfilled then it will not be treated as export.

So you are not required to pay Service-Tax, as this is export as per the above Rule.

But here you have to clearly specify in your question that what kind of service actually your company provides through online mode.

Software development,designing,programming, customisation,adaptation,upgradation,enhancement , implementation are covered under declared service.

Thanks,

PALLAV DAVE

PALLAV DAVE (Querist)

12 April 2014 They are making applications for Android Google play & Apple ios & upload the said application on the Google play store and ios. When user of this application download the said software the said company remit the amount to the our bank account.

So i just want to know that is this declared services under the category of the development, design, programming, customization,
adaptation, up gradation, enhancement, implementation of
information technology software;???

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