Funds From U.S.

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This query is : Resolved

Mohd Sarfaraz Latibani (Querist)

31 March 2009 Dear Sir,

I am providing service to a US company and I am not doing any local business . We are receiving the funds from US in One of my employees account and he is crediting the same to company's account.I want to know can the Govt claim it as a local income and charge service tax on it.
Thanks.

Arun

Arun (Expert)

31 March 2009 The Export of services is exempted if
Services provided outside india and Invoice raised in Foreign currency and amount received in convertible Foreign exchange with in specified period . Are u satisfying the Conditions

Arun

Arun (Expert)

31 March 2009

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

01 April 2009
The funds has to be received to the account of the service provider in convertiable foreign exchange and FIRC should mention those details like Bill no. .

If invoice is one name and receiver is the other person how you can match. There should be matching principle.

You are following a dangerous procedure and the service tax department can say you have provided service in INDIA and in turn he has exported.

And in whose name the service tax registration.

Kinldy take quick steps to rectify the mistakes happened otherwise you will be caught by service tax department.

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