Export of services

This query is : Resolved

jitender (Querist)
Follow

26 January 2009 Whether business auxiliary service provided in India to the clients based in India of the foreign holding company by a subsidiary company of that foreign holding company will be treated as export of service ? The bills for these services are raised on the holding company after providing the service on the instruction of the holding company and foreign inward remittance is received from the holding company. Kindly reply citing the sections and rules in this regarding. Thanks.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

26 January 2009 The details are as per the Export of service rules.

Two conditions to be satisfied are :
(1) The service is utilised outside the country.
(2) Money is received in foreign exchange.

Second conditions is fulfilled since the remittance is received in foreign currency.
The first condition you should check whether the effective service you are providing is utilised by the holding company situated outside india.

If both the conditions are satisfied then it is treated as export of service and we can claim exempiton from service tax.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now