Export of Services

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Hi..

We are in to enginering consulting and we have a order of export of services but they are paying us in INR localy, please let  me know whether service tax is applicable or not

Replies (3)

Dear Maheshwar,

Could you pls clarify the following.

  1. Is the contract entered into with a customer abroad or in India.
  2. Is the customer paying for your service acting as an agent between you and the end customer?
  3. If multiple parties are invovled, who are you raising the invoice on and is it a USD or INR invoice?

Thanks,

Ganesh

1. Indian Customer

2. End customer, paying in INR

3. Our engineers will work at onsite at overseas  and we will bill to local company.

Dear Maheshwar,

For a services to be treated as Export, following conditions should be satisfied.

1) the services should be rendered outside fully or partly and in certain cases there are assumptions that the services are rendered outside india.

2) payment for such service should be received in convertible foreign exchange.

In your case, as you are not receiving money in convertible foreign exchange, this service will not be considered as Export.

Thanks,

Ganesh


CCI Pro

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