Service tax exemption

This query is : Resolved

md shakil (Querist)
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21 February 2013 Sir,
An Indian individual is providing service(Data entry) to a foreign company getting $3550 and NEFT transfer of Rs 850000/-
Plz advice is it taxable. If yes who is liable for tax?
Anyone can help

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 February 2013 export of services is not chargeable to service tax in India (subject to compliance with Export of Services Rules)

The income tax shall apply accordingly.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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22 February 2013 Under the negative list regime the export and import of services have been replaced by the Place of Provision Rules. As per Rule 9 of the Rules the place of provision of the service of online information and database access or retrieval services is determined on the basis of the location of service provider. In the given case since the location of the service provider is India, the taxable territory, hence the service would be taxable in India and you would be liable to pay service tax. You could however avail the service tax exemption available to small service provider of Rs. 10 lakhs as per Not. 33/2012.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 February 2013 thanks for the update Madam Kejriwal.

the author may follow her advice if the conditions mentioned by her are satisfied in this case.