Service Tax is applicable on service render outside india

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This query is : Resolved

Deenanath Tiwari (Querist)

11 January 2011 Dear All,

I am working in a IT Company. As we are provide web hosting service to our international client. we buy hosting service from US and sell it to international client and in our nation also. we charge service tax to our local customer but we are not charge service tax to our international customer. Shall i charge service tax to international customer?

Deenanath

Pradeep Kamath

Pradeep Kamath (Expert)

11 January 2011 The services are divided into three categories under rule 3 of the Export of services rules, 2005.
You need to check under which category your service falls, and whether the condition provided in the rule is satisfied, for it to be called as export of service.
If the condition is satisfied, you need not charge service tax on such services exported. (Rule 4 provides that any service may be exported without payment of tax.)

Pradeep Kamath

Pradeep Kamath (Expert)

11 January 2011 Also refer https://forum.qualispace.com/showthread.php?p=454
So it depends on under which category you classify your service.

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