services provided in India to Foreign company by CA

This query is : Resolved

Shahid Raza (Querist)
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03 June 2009 The invoice of consultancy services is to be raised by chartered accountancy firm to a foreign company against consultancy services provided. Amount will be received in foreign exchange. Whether service tax is to be leived or not?

What is the criteria of determining whether the services are provided in India or outside India?

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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03 June 2009 In case of Practicing Chartered Accountants Service, the following are the criterion for determining whether the services qualify as export.

(i) Provivion of service should be performed outside India, partly or completely.
(ii) Service should be provided from India and used outside India.
(iii)Payment of such service is received by the service provider in convertible foreign exchange.

If your services meet the above criterion, then you have the option not to pay service tax . But if you have already collected it you can get rebate of the tax paid on such services.

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