Exporty of service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2011 I need information for the below data:

Firm is in the business of Software Development and Management Consultancy.

They Develop the Software and same are exported to the single buyer along with Management services.

Client are liable for service tax or not for the service exported?

U S Sharma

U S Sharma (Expert)
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10 September 2011 1. software services are used "out side india"

2. payment is received in "convertible foreign exchange" through banking channels.

if above two clauses are confirmed then no service tax payable,

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Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2011 Got the point, however client also take services for the export of service and on the same they paid service tax. However they don't want to take CENVAT credit. Whether registration of Service Tax is compulsory for them and submit NIL Return of ST or no registration is required?

U S Sharma

U S Sharma (Expert)
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10 September 2011 they dont have to charge service tax of the portion which is paid in covertible foreign exchange.

they can file refund claim for st paid on exports.

once registered filing of returns get mandatory, even NIL returns.

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