Income Tax on services rendered outside India

hi all,

i would also like to know thw answers for this .

As you are providing IT staff outside India you are covered by Man power service and as you are in India and providing services outside India your services are subject to service tax.

You need to charge service tax currently 12.36%.

Secondly you can do remmitance to your employee in dollar for theri accomodation. In accountancy you can show it as imprest or advances given and it will not attract to TDS.

Company shall pay income tax on profit from this activity.

One advise from my side is that, this type of question you should post for experts.

Bhavin the rate of service tax is 10.3%.

Mr Venki, I wud like to draw ur attention to rule 4 read with clause 3(iii) of Export of services rules,2005 in case of services exported out of India, the exporter can do so without payment of service tax,provided the payment is received in convertible Forex within the time allowed by RBI. Also u cannot take credit of the input goods and services used in relation to this service. Rest the answer given by our friend Bhavin is correct.

thank you Mohd Atir for drawing my attention to rule 4.

I agree with Mr. Mohd.

Thanks Guys...

thanks

As per my view,

1. As explained earlier by Mr. mohd atir, No need to charge service tax if the bill is made in foreign currency.

2. If the employees are Resident in India then, TDS needs to be deducted u/s 192. (assuming the payment of salary is done by you/ your company)

3. it is ovbious that the company needs to pay tax for such income.

Correct me if i m wrong.

Click thanks to user if u agree.