Consultancy services

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Hi,

Need to know whether service tax is applicable for consultancy service like providing market information, agency commissions on products sold in India, etc when the receipt of service is outside the country. Service provider receives 100% payment in forex  towards the service rendered. Service receiptant does not have any office in India. If exempted please let me the notification details

Replies (4)
Dear prakash your case comes under export of services and hence exemption is available. You can read export of services for the same on google. I hope this well you regards

Thanks Manoj for your quick response. Let me be more specific:

1. My firm (partnership) locates customers, provides market information, etc which results in sales of products in India. Towards this we are paid consultancy fees (commission) in forex

2. If you read the July 2012 notification on Export of services there seems to be some confusion which states that even if the service receipt is overseas and pays in forex, service tax may be applicable 

3. If will be helpful if you can provide me the notification to claim exemption

Regards,

Prakash

Dear Sir, Export of Service Rules has been withdrawn w.e.f. 01-07-12. Now, benefit of export of service is received under Rule 6A of Service Tax Rules, 1994. If you are providing 'intermediary' service, then service tax is applicable @ 12.36%. Prima Facie, it seems you are not providing 'intermediary service' and exempted from service tax. Kindly E:Mail for further clarification.
Thank you for quick reply. Please advice the notification no from the drop down menu on ST 3 to be entered. Appreciate your advice.

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