Export of Services Rules

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Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2011 I had a query If a Foreign Company recieves a contract of Overhauling of machinery from Indian Company( Say A ) and the the Foreign Company outsource that contract to the another Indian Company ( say B ). My query is that when the Indian Company ( B ) will raise the invoice to Foreign Company, Will it be treated as Export of Service and accordingly whether we need to charge the service tax.

Vivek Raju P

Vivek Raju P (Expert)
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12 January 2011 i believe B which will raise invoice on foreign company for services value to be received in convertible forex will not be liable to service tax.

While A Company which will be receiving the services thru the foreign company will have to pay tax as reciepient of services U/S 66A

Ashok Asthana

Ashok Asthana (Expert)
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24 February 2011 Service tax will be applicable as both companies are resident of india.
The services provided will be treated as services provided in India.

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