Tax applicability of service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 February 2016
Hello,
i have one question on service tax,
one of our client is locating in India and there another office is locating outside India.
now we have received Purchase order form outside India and we will send invoice to outside India but we will provide service in India.
do we have to charge Service tax to on Invoice.
i have one question on service tax,
one of our client is locating in India and there another office is locating outside India.
now we have received Purchase order form outside India and we will send invoice to outside India but we will provide service in India.
do we have to charge Service tax to on Invoice.
Suresh Ramaswamy
(Expert)
02 February 2016
If any service not in the Negative List is rendered in India, it is subject to service tax - hence service tax is leviable.
For services rendered to non-resident service recipients exemption is available under "Export of Services Rules". To qualify as export of service three conditions are mandatory:
(1) The service provider is resident in India and the service recipient is a non-resident The service
recipient has no office, branch associate or recipient in the taxable territory.
(2) The service is rendered outside the taxable territory.
(3) The consideration is received in convertible foreign currency through proper banking channels.
If condition one is fulfilled and your overseas branch renders services abroad then you can claim exemption from service tax.
For services rendered to non-resident service recipients exemption is available under "Export of Services Rules". To qualify as export of service three conditions are mandatory:
(1) The service provider is resident in India and the service recipient is a non-resident The service
recipient has no office, branch associate or recipient in the taxable territory.
(2) The service is rendered outside the taxable territory.
(3) The consideration is received in convertible foreign currency through proper banking channels.
If condition one is fulfilled and your overseas branch renders services abroad then you can claim exemption from service tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
