Service tax on Audit outside india

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2010 Hello all,

My client conducts ISO AUdit & registered in service tax, he conducts the Audit in India as well as outside India.

I want to know whether

a) the service tax is applicable for the services rendered outside India.

b) if the Auditors are outsourced from other Audit firms in India to conduct audit outside India, are we liable to pay the service tax to the outsourcing firm.

Prabhakar

Prabhakar (Expert)
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24 November 2010 1) Services rendered outside India are treated at as export of services if amounts received are in convertible Foreign exchange - In such cases no Service Tax is applicable.
2)I hope it is not just hiring of the auditors..in my view, since the outsourced firm is providing services to you, service tax is applicable if they bill to you. Here you act as exporter of services under Business Auxillary Services. Otherwise if you hire them and provide services outside ST is not appicable.

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2010 Thanks Mr. Prabhakar for the prompt reply,

with ref. to point 2, What exactly is the difference b/w hiring & outsourcing, whether hiring is for an individual & outsourcing is with a team or a Firm ?

Prabhakar

Prabhakar (Expert)
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24 November 2010 Hiring is nothing but taking the people from other firm and completing the job. Outsourcing is giving a particular job itself to other firm to complete it.

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