Foreign currency

Service tax is not applicable on export of services; however do declare the value as exports in your returns. You can also claim refund of your accumilated cenvat credit.

Hi Guys, 

                the services we provide are mostly design services and graphics related. more in the terms of graphics creation in 3D. Apart from that there is no other service that we provide. 

Hi Ajit, 

            Be provide design services to the Uk based firm.  BAsically we finish the graphics and 3D work and send it across to the Uk based firm. Then they mkae the payment accordingly in GBP,

This money come to India in GBP. 

It is also deposited in the Bank in GBP and can be converted to INR when we want. 
 

My querry is that bacause the money that is paid to us here in foreign currency is it taxable?

I am actually confused as there are a lot of people stating that cause the money that is paid comes in GBP it is exemted from service tax. 

I would like to know if this is correct. 

and as i am the service provider getting payment in forign curreny will this money be taxable at 12.36% ?

Hi Ajit

under which section is service tax applicable. the service provider is in taxable territory and service receiver is outside the taxable territory.

Hi guys,
thank you so much for the inputs. 

About your llast input Ajit, 

The service receiver our client, has no permanent establishment in india, 

and the service provider that is us have no permanent establishment in india either, 

However we (service provider) have a service tax number. 

according to this scenario are we liable to pay service tax for money coming in from the service receiver to us?

Hi ajit, 

              nope we dont have any establisment. 

If by establishment you mean just having a service tax number then yes we do. 

other wise there is no office whatsoever in india.