Is export of services exempted from service tax?

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Hi Experts,

I have a question, I'm resident of India and providing web development services outside India and raising invoice to the client in USD but when my client paid me the amount through his bank "Bank of America" he transfered in USD to my account, next day I got a NEFT in my account that was done by AXIS BANK in INR on clients name. He told me that AXIS BANK is the corrospondant bank of Bank of America in India. I would like to know that the payments I received is exempted from services tax in India?

This is all I want to know about. Really thankfull that you spent time on reading my question and replying the same.

Regards
Naren
 

Replies (3)
Yes, export of service is exempt from service tax. In your case money what you have received is exempt, but if the invoice value is more than 10lakh (INR) then you should get service tax registration.

I have already taken a service tax number, will this still exempt?

Yes, you have to declare that exempt service amount in ST return.


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