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Sell software to clients outside india - service tax?

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Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2017 I'm a sole proprietor and sell software online to only clients outside India and the annual turnover is 1 crore rupees. The payment partner is PayPal and they convert the foreign currency into INR and deposit into my account.

Questions.
1. Do I have to pay service tax in India?
2. I have one developer who is freelancing for me and I pay him 50% of the revenue.
Since I'm in India and he is in India does he have to pay service tax?

CA Ashish Garg

CA Ashish Garg (Expert)
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04 February 2017 1.NO you are not required to pay service tax in terms of Rule 3 of Place of Provision of service rules 2012

2. Your developer shall be liable to pay service tax on services provided by him.

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