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Funds Coming From Nepal against Software Development

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Rekha Roy

Financial Administrator

20 Points Posted on 27 June 2011

Hi All,

We are software development firm and are providing the software consultancy services for nepal based client.the amount which we will be receiving will be liable for the service tax or not. and also let me know about the TDS amount.

Please let me know in case of any conceerns

Thanks

Rekha Roy

Replies (1)

CA Unnikrishnan Nair N

Chartered Accountant

20 Points Posted on 28 June 2011

If service recipient is situated outside India and payment is received in foreign exchane, it amounts to export of service and hence not liable to service tax . As long as it is Nepal, the payment might not be in foreign exchange. Pl. ensure that aspect.