service tax urgent

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Misbah (Querist)
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06 February 2017 hi. I've started a new proprietorship firm and work individually for a company outside India. I do not require to employ anyone for my work. My CA suggested I don't have to pay service tax as I'm not employing anyone. is that true? under what act? also I'm on a contract with the person who I'm doing service for.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2017 It is not true. Service tax applicable if you provide alone without employing any body any taxable service. Tell me the nature of service and where the service is provided.

Misbah

Misbah (Querist)
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06 February 2017 it's IT services. In Bangalore

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2017 Good. the service is provided to a client out side India and payment is received in foreign currency, then it is considered as export of service and no service tax applicable.

Misbah

Misbah (Querist)
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06 February 2017 thank you very much

Misbah

Misbah (Querist)
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06 February 2017 although is the FEMA act applicable here?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2017 Yes FEMA Act applicable here any export of goods or services payment should be received in foreign exchange.

Misbah

Misbah (Querist)
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06 February 2017 so what exactly does it imply to me? do I have to pay any seperate tax for it?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2017 If you mean FEMA No separate tax payable for it.

Misbah

Misbah (Querist)
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06 February 2017 it's just that it will be covered and people will know that income has been recieved from foreign sources. I don't really know much about it

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2017 The main condition is for all export of goods and services is the payment should be received in foreign currency routed through banking channels.

Misbah

Misbah (Querist)
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06 February 2017 OK that's done.

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