Service tax - inter company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2011 We are 100% subsidiary of our parent company in US.

We provide software/recrutiment and consultancy services to our parent company and do not have any revenue out of our India operations.

Forthe services we render, we invoice our parent company on the admn/overhead margin.

Do we have to add service tax while we invoice the parent company.

Pradeep Kamath

Pradeep Kamath (Expert)
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05 January 2011 You need to check first under which category of service (there are 3 categories - refer rule 3 of the Export of Service rules, 2005.) your service falls, and whether the condition mentioned in the rule is satisfied for it to be called as export.
If yes, it does not attract service tax liability.