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Service tax for expoting educational service to usa

ravindra (director) (24 Points)

02 March 2016

We are a Pvt. Ltd company registered in India and we provide online tutoring service in USA 98 % (90 Lakh approx ) of Payment we Take via PayPal.com and few student pay (total approx 2 lakh in a financial year) us from India but receive service in USA now my concern is do i need to pay service tax

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Kashish Gupta (B.com (H) , ACA) (368 Points)
Replied 02 March 2016

You are providing services to students in USA. If recording for such classes are done in India and live coaching is provided, service tax is applicable because location where services are performed is in India and performance of such services require physical presence of receiver. However, if recoding is done in a CD and such CD is sent to the person in USA OR Recorded class is run, then contrary stand could be taken. However, for this I would need to know more facts and business operation. Hope at preliminary stage you got the point. For further clarity you can contact me at 8510806440.