Export of services

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ANSHUMAN KHANDELWAL

JOB

20 Points Posted on 29 June 2011

Dear All,

Just need your opinion on below case :

A company registered in india bearing a salary cost on behalf of subsidiery incorporated in outside india.

Nature of work done by such employee :Some of employees of indian entity maintain accounts of subsidiery company in India.

now my questions are as under :

1) whether it is come under Export of services.If yes then Nature of services ?

2) if it is export of services then indian company will raised Debit note to foreign company for reimbursement of salary cost with service tax .Is there any TDS liability anywhere ?

3) Is there any other option to charge back salary cost from foreign counterpart without regisatering in service tax ?please note both companies has trading transactions during year.

please help me earliest.

Thanks

Replies (2)

rvsekar2000

20 Points Posted on 29 June 2011

Hello,

As per RBI Master Circular ,

export of services to which none of the Forms specified in these Regulations apply, the exporter may
export such services without furnishing any declaration, but shall be liable to realise the amount of foreign exchange which becomes due or accrues on account of such export, and to repatriate the same to India in accordance with the provisions of the Act, and these Regulations, as also other rules and regulations
made under the Act.

Hence ,you need not file any form for export of services to RBI and may raise debit note for the expenses involved in India .

R.V.Seckar

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