Exported service

This query is : Resolved

Naseef Ummer (Querist)
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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?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

Naseef Ummer

Naseef Ummer (Querist)
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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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 April 2016 Still service tax is exempted.

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