Export invoices

868 views 2 replies

Asha Vaishnava

Manager - Finance & Accounts

290 Points Posted on 04 November 2012

Dear Sir/Madam,

Am working for a Pvt Co.,, where the business is Software Development/ Professional Services (back office). My query is on Export Invoice, does it attracts Service Tax on below cases?

1. Raising invoices to Offshore Clients whether worked on project onsite or offshore ?

2. If we have a client in Offshore but we, as their vendor support their team for backoffice set up in India & charge them a fees. Does Service Tax attracts even though we raise invoice in USD ?

Looking forward for your reply.

Regards,

Asha

Replies (2)

ASHISH JAIN

STUDENT

240 Points Posted on 04 November 2012

If the services are provided in india, then it will attract service tax and if the service is provided overseas, the service tax shall not be levied. The basis is the location of services provided.

CA Unnikrishnan Nair N

Chartered Accountant

2083 Points Posted on 05 November 2012

Conditions to be fulfilled are

1. Service provider is located in India

2. Service receiver is located outside India

3. Place of provision of service is outside India

4. Consideration received in foregin exchange.

To determine the place of provision of service , IT development does not fall under the specified categories hence the general rule may apply as per which place of provision is the location of the service recipient. As this is outside India, I am of the view that this amounts to export of service.