Export of services

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Anuj (Querist)

10 September 2009 I hv one query regarding service tax on services provided to International Long Distance (ILD) Licence holder.

ILD holder terminates international call on our company national Long Distance (NLD) POI and we terminate these calls to Telecom Operator in indian territory like BSNL,AIRTEL,VODAFONE etc.

We had invoiced to ILD holder by leving service tax but he told us that he is providing services to foreign customer so that service tax is not leviable on export of services.

I want to know whether he is right or not.

Further, telecom operator (BSNL,AIRTEL etc.) on whom POI we terminate calls r also leving service tax on invoices to us and we r availing CENVAT.

According to me we hv to levied ST on invoiced to ILD Holder because we r providing services to ILD holder not directly to foreign customer and his office is in india.

thanks & regards,
CA Anuj

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)

10 September 2009 To qualify as export of services the following conditions must be satisfied.
(i) Taxable service should be delivered outside India and used outside India, and (ii) the payment received for providing taxable service should be in convertible foreign exchange.
If the above two conditions are satisfied then it qualify as export of services.

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