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Applicability of service tax

ankit (director) (48 Points)

08 July 2015

my client is running bpo in india and provide tech support service to foreign clients and earn income in convertible foreign exchange. is the company liable to service tax?

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6 Replies

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 08 July 2015

I think, if service provided in India then ST is applicable. Lets see other view also

pankaj (finance) (52 Points)
Replied 08 July 2015

Service is provided in non taxable territory, no st is applicable

CA SHIRISH (proprietor) (24 Points)
Replied 08 July 2015

Service provided in out side india so service tax not applicable

Nimish Jain (Internal Auditor/CA final student) (240 Points)
Replied 08 July 2015

No serviCe Tax applicable since service provided outside taxable territory

swadhin kumar mallia (student) (50 Points)
Replied 08 July 2015

Service tax based upon destination based . So no st payable in case of service.

CMA Poornima Madhava (CMA) (13097 Points)
Replied 08 July 2015

As per Rule 6A of STR, conditions to be satisfied for export of services:

It must be a service as defined u/s 65B(44)
By a service provider located in a taxable territory
To a service receiver outside India
The service is not a service specified in the negative list
The place of provision of service is outside India
Payment for such service is received by the service provider in convertible FE
Service provider & service receiver are not merely establishments of a distinct person by virtue of explanation 3(b) of 65B(44)

If the above conditions are satisfied, it is export and no ST is attracted.