eludic (Proprietor) (28 Points)
09 April 2013I am an IT consultant providing services to clients out of India for which I receive the payment via remittance. My question is, according to the changes made in 2012 am I suppose to pay service tax even though the services I provided is to clients who are based abroad? They do not fall under the taxable jurisdiction of the Indian boundries.
Please reply as I am still confused on this one for I know none of these clients would pay extra money for a tax not payable in their country.
Abhijeet Jain
(CA)
(169 Points)
Replied 14 April 2013
You have not mentioned anything about the nature of service invovled. However you need to refer "Place of Provision of Service Rules, 2012" to determine taxaiblity of the service. Addtionaly you can avail benefit of export by fulfilling condtions specified in Rule 6A of the Service Tax Rules, 1994.
Harshal
(Engg. Service Manager)
(32 Points)
Replied 14 April 2013
| Originally posted by : Abhijeet Jain | ||
 |
You have not mentioned anything about the nature of service invovled. However you need to refer "Place of Provision of Service Rules, 2012" to determine taxaiblity of the service. Addtionaly you can avail benefit of export by fulfilling condtions specified in Rule 6A of the Service Tax Rules, 1994. |
 |
Similar to case above, I am providing engineering services to US customers.
I have registered as Pvt. Ltd Company in India and only.
Have an IEC in the company name.
will maintain 100% EOU status
Have subscribed for a packeged engineering software from US on yearly basis to be used for executing the projects.
The software maker company does not have offices in India.
I have to pay to the software company for using the software license.
My Question: Will I have to pay service tax in India?
If yes, why?
If no, why?
Please guide.
Robin Sampang
(Managing Director)
(21 Points)
Replied 17 April 2013
| Originally posted by : Harshal | ||
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Hi,
I am also providing recruitment services to the Middle East Countries & they all are 100% tax free zone. I have to raise an invoice for my services, so my question is Shall I charge the service tax to my client ? Will they pay tax(Since these countries are tax free) ? We are based out in India.
Your help will be appreciated. |
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Abhijeet Jain
(CA)
(169 Points)
Replied 17 April 2013
On Harshal's Query: As I understand you are providing services to a client based outisde India and also receving services from a software Company located outside India. In case of your output service you can claim benefit under export of service (subject to fullfillment of conditions of Rule 6A of STR, 1994) and not required to charge & pay service tax, however for software services you will be required to discharge service tax liability under reverse charge mechanism as per Section 68 (2) read with Notification 30/ 2012. The service tax so paid can be claimed as Cenvat credit and in case there is no service tax liability on your output services then you can file a refund claim with the service tax authorities.
eludic
(Proprietor)
(28 Points)
Replied 17 April 2013
| Originally posted by : Abhijeet Jain | ||
|
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You have not mentioned anything about the nature of service invovled. However you need to refer "Place of Provision of Service Rules, 2012" to determine taxaiblity of the service. Addtionaly you can avail benefit of export by fulfilling condtions specified in Rule 6A of the Service Tax Rules, 1994. |
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The nature of services is IT software consultancy where we implement the solutions according to clients requirements.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3469 Points)
Replied 19 April 2013
Eludic and Robin,
Prima facie you are exporting services. Export of services is outside service tax net. As pointed out by Abhijeet, export must comply with the criteria listed out in Rule 6A of Service tAx Rules 1994 read with Place of Provision of Service Rules 2012 effective 1 July 2012. The payment must come to India in convertible FE through international banking channels. Also teh same should come within 1 year from date of export invoice.
Thanks,
Mani
(manager)
(21 Points)
Replied 30 November 2013
Hi Sir,
Have small clarification on service tax issue. Details are below
Place of Goods loading: Singapore
Place of goods discharge : india
Service provider located in india and providing service from Singapore to india.
The Client in india ( we) are asking to bill the charges (Freight + Exwork) to our exporter (Singapore company) in foreign currency. But they are charging S,TAX .
Is service tax is liable even if it is a foreign company in USD ?
PLEASE ADVICE… Thanks
GAURAV JAIN
(STUDENT)
(29 Points)
Replied 29 July 2015
Dear ,
whether services perform in india by an indian service provider to service receiver outside india are taxable as per new Service tax provision w.e.f 01-04-2012. which POPs Rule is aplicable for taxability of such service.
are nature of service provided make any differnce ?
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