Exported service
This query is : Resolved
16 April 2016
We are a registered private limited company providing engineering consultancy services for both domestic and international clients.
Some of our customers pay us against an invoice through PayPal in US Dollar which ultimately PayPal converts to Indian Rupee and transfers to our bank account automatically.
Is it required of us charge service tax for this transaction and pay to the government through NSDL? Is only company tax on net profit applicable? Are there any applicable taxes or licenses for us to provide this service?
16 April 2016
Service tax payable on domestic consultancy services. No service tax payable on consultancy service provided to international clients.
Company tax on net profit payable.
No licenses required for providing the services.
Company tax on net profit payable.
No licenses required for providing the services.
16 April 2016
There is a concern related to the record. Here, in bank transaction it shows that PayPal India is paying to our account. The transaction takes place in the following sequence:
1. We send the invoice in US Dollar.
2. The client sends to our PayPal A/c.
3. PayPal cuts commision of 4% of transferred amount plus $0.30.
4. PayPal automatically converts the remaining US Dollars to Indian Rupee.
5. The converted Indian Rupee is transferred to our bank A/c.
So is service tax still exempted?
Thanks in advance.
16 April 2016
Still service tax is exempted.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Income Tax Return under Old Regime for A.Y. 2025-26
- TCS on travel expesnes
- RENTAL INCOME-GST
- Appropriate IT return form
- Capital gains-3.7.25
- Disturbing entry reflected in AIS increasing scope of notice u/s 69
- IT Return - other income
- Strange tax problem
- TDS-Interest on late payment
- ITR FORM AND SECTION RELATED
- Clarification on Monthly Reset of Invoice Serial Numbers under GST
- ANNUAL RETURN OF COMPOSITION DEALERS
- Amendment in E-Invoicing
- Data Error in Offline Utility of GSTR1
- Regarding additional late filing fees under TDS return intimation
- Penalty and interest rate by gst department for delayed payments
- NRE bank accounts in ITR
- Reversal and Reclaim issues
- F & O TURNOVER CALCULATION FOR TAX AUDIT
- Notice for non filing Form GSTR-4 (Annual)
Trending Online Classes
-
Certification Course on GSTR-3B Reconciliation with GSTR-2B through AI Tools
CA Deepak Gupta15 July 2025
CAclubindia
