22 October 2011
I am a service tax assessee under business auxiliary services. Incomes from Indian companies for exports are collected with service tax and paid to Govt.
My question is with reference to : income in USD from Thailand for export of their material to Nepal. - With reference to Service tax - is this to be treated as exempt service or if it becomes export of service, or since this is service outside India - so it may not be a taxable service ?
Also does it need to be mentioned in Service Tax Return ? If yes, under which heading etc., and is it required to be mentioned in total value of taxable bills raised ?
If exempt, what are the relevant notifications etc. ??
24 October 2011
There are three criteria for export of servcies. For the category of service under BAS, the criteria is that the service receipient should be siturated outside India and the payment is received in Foreign convertible currency. Since, the payment is in USD then this condition is fulfilled but if the recipient is Indian company then it will not be termed as export of service.
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