Registrations required to provide the accounting services from India to US
This query is : Resolved
21 September 2016
I am planning to provide the accounting services to US Client.
what is the procedure as per the law?
1. registrations with any authorities like service tax/import or export or shop establishment
2. procedure and document required to provide the export services
thanks
21 September 2016
1 This service is exempted from service tax so no registration is required under service tax.
2 Issue invoice and realize the receipts through banking channels. Your banker will guide you regarding RBI guidelines.
3 If you are providing the services from home no shop establishment licence is required.
2 Issue invoice and realize the receipts through banking channels. Your banker will guide you regarding RBI guidelines.
3 If you are providing the services from home no shop establishment licence is required.
22 September 2016
Thanks for valuable inputs. on the 3rd point, I am planning to provide services from home but I need one more person to help on my work and I need to pay salary to him. How to proceed?
22 September 2016
One person no problem go ahead.
22 September 2016
Thank you so much
22 September 2016
Just to clarify. i am going to provide the accounting services from India to US in the above questions.
20 July 2025
hanks for sharing your plan! Let me summarize and clarify everything regarding providing accounting services from India to a US client, focusing on registrations and compliance:
1. Is Service Tax Registration required?
As per Indian service tax law (before GST):
Accounting and bookkeeping services exported outside India are classified as export of services and are exempt from service tax if conditions are met.
Hence, no service tax registration is mandatory solely for export of accounting services, unless your aggregate turnover exceeds the threshold and you have other taxable services.
Post-GST (from July 2017 onwards), you would register under GST and claim export benefits accordingly.
2. Export of Services Procedure
Invoice: Raise an invoice to the US client mentioning that it is an export of services.
Payment: Ensure payment is received through normal banking channels (RBI-approved channels such as wire transfer, SWIFT, etc.).
The RBI and your bank will guide on compliance with FEMA regulations on foreign exchange receipts.
Maintain proof of export (invoice, payment receipt, contract).
3. Shop & Establishment Registration
If you are working from home and employing only one person, you do not need to register under Shop & Establishment Act (which is typically applicable to commercial premises with employees).
If you plan to hire more employees or operate from a commercial office, then Shop & Establishment registration may be required depending on local state laws.
4. Other registrations/considerations
PAN and TAN: Ensure you have PAN and TAN for tax purposes.
Income Tax: You must file income tax returns on income earned from export services.
GST: Under GST, export of services is zero-rated supply. If GST applies, registration is mandatory if turnover exceeds threshold, and you can claim refund of GST paid on inputs.
1. Is Service Tax Registration required?
As per Indian service tax law (before GST):
Accounting and bookkeeping services exported outside India are classified as export of services and are exempt from service tax if conditions are met.
Hence, no service tax registration is mandatory solely for export of accounting services, unless your aggregate turnover exceeds the threshold and you have other taxable services.
Post-GST (from July 2017 onwards), you would register under GST and claim export benefits accordingly.
2. Export of Services Procedure
Invoice: Raise an invoice to the US client mentioning that it is an export of services.
Payment: Ensure payment is received through normal banking channels (RBI-approved channels such as wire transfer, SWIFT, etc.).
The RBI and your bank will guide on compliance with FEMA regulations on foreign exchange receipts.
Maintain proof of export (invoice, payment receipt, contract).
3. Shop & Establishment Registration
If you are working from home and employing only one person, you do not need to register under Shop & Establishment Act (which is typically applicable to commercial premises with employees).
If you plan to hire more employees or operate from a commercial office, then Shop & Establishment registration may be required depending on local state laws.
4. Other registrations/considerations
PAN and TAN: Ensure you have PAN and TAN for tax purposes.
Income Tax: You must file income tax returns on income earned from export services.
GST: Under GST, export of services is zero-rated supply. If GST applies, registration is mandatory if turnover exceeds threshold, and you can claim refund of GST paid on inputs.
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