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Export of service

2932 views 7 replies

Nisha

Job

140 Points Joined June 2011

Case: Service provider in India, Service receiver in USA, Service provided is software service and Consideration would be service provider would be receiving dollar. Whether service tax would be charged on such service? Reply asap...

Replies (7)

Guest

Yes....and service provider had to pay service tax in this case

Anurag Maheshwari

partner

21 Points Joined July 2013

No, because service tax is a destination based tax. It will be levied on assessee if services are received in India.

Nisha

Job

140 Points Joined June 2011

Anurag, Services will be received outside India.so what you think

Nisha

Job

140 Points Joined June 2011

Ankitj tell the logic behind your conclusion

Anandsagar

Accountant

40 Points Joined July 2011

No, Service tax will not be applicable, if services provided out of India.

CA Pallav Singhania

IT System Auditor

33683 Points Joined April 2010

As per Rule 6A of Service Tax Rules, 1994, provision of any service provided or agreed to be provided shall be termed as Export of Service if following conditions are satisfied:-

1. The provider of taxable service is located in taxable territory.

2. the recipient of service is located outside India.

3. the service is not a service specified in the negative list [Section 66D].

4. the place of provision of the service is outside india.

5. the payment for such service has been received by the provider of service in convertible foreign exchange.

As per my view, In your case all the above conditions are satisfied. Hence, it will be covered under export of service and you are not liable to pay service tax.