S.t. on service provided from india to a foreign company

This query is : Resolved

Rahul Bafna (Querist)
Follow

11 February 2013 hi,

I would like to have some clarification on the above mentioned topic.

A person in India is providing consultancy service to a company outside India. I would like to know whether service tax is applicable for Consultancy Fees received. Fees is received in the Foreign currency and the person providing service is residing in India and service is provided from India to the foreign company.

Rahul Bafna

Rahul Bafna (Querist)
Follow

12 February 2013 Friends,

please help me out on this :(

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

22 July 2025 Hey! Here’s the scoop on service tax for consultancy services provided from India to a foreign company:

Is Service Tax Applicable?
Under Indian Service Tax law (pre-GST regime), services exported out of India are considered “export of services” if they fulfill certain conditions.

Export of services is zero-rated, which means:

No service tax is payable on export of services.

The service provider can claim a refund of any input service tax credit (if applicable).

Conditions for Export of Services (as per Service Tax Rules):
Location of Recipient:
The recipient of the service must be located outside India.

Location of Supplier:
The supplier of the service (you) must be located in India.

Place of Provision of Service:
The service must be provided outside India.

Payment in Convertible Foreign Exchange:
The payment for the service must be received in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India.

Application to your case:
You are in India (supplier located in India).

The company is outside India (recipient located outside India).

You provide consultancy services from India to the foreign company.

Fees is received in foreign currency.

All conditions for export of services are met.

Conclusion:
No service tax is payable on the consultancy fees received from the foreign company (zero-rated supply).

You can claim refund of input service tax credit on inputs/input services used to provide this consultancy service.

However, you need to maintain proper documentation to prove the service is exported (like contract, proof of payment in foreign currency, invoices, etc.).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SARAVANAN PALANISAMY

GST Karimnagar state

Darshan

Krishnamohan Gangaraju

CA Bijo scaria

Subscribe Now

S.t. on service provided from india to a foreign company

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA