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Export of service

ANIL KUMAR ROHATGI (PROPRITOR) (28 Points)

26 September 2016

Question arises for your comment. One of my assessee company is engaged in the business of providing services to a foreign company, the proceeds are realized in foreign currency. The services are rendered for business development and other matters in India. The company is filing return of Nil services and are of the opinion that these are export of services and hence not liable to Service Tax. As an auditor of the company I checked their Service Tax returns filed as nil liability. Whether I am liable to report this matter in Audit Report & how?

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Deepak (Chartered Accountant) (254 Points)
Replied 26 September 2016

Dear Sir,

The reporting of matters in Audit Report is a professional Judgement. As far as the export of service is concerned if it satisfies the conditions laid down in Rule 6A of Service Tax Rules, 1994 it will be treated as export of service and no service tax liability will arise as far as the company providing such service is concerned. However, you shall carefully check whether the conditions have actually been satisfied or not? and check whether the company has properly disclosed the turnover in return by showing the amount in seperate column given for "export of service turnover" and again showing in exemption the entire turnover in Exemption column."The point to be noted here is some people just file the return as Nil return without showing their export turnover that is wrong and that need to be seen carefully.