IT services performed outside India

As being the export of service ST is not liable to charge.

Regards,
Rahul

1. Service tax is not to be charged.

2. You can pay directly the exp. secondly you can also give them some PDA. so that the employee can make local transport and other minor exp from it. Also try to keep some bill so tht it wont be taxed from employee and employer.

3.  Also Yes you need to pay IT on profit from the transaction. But you have to do accounting accordingly.

Originally posted by : CA Shivang
	1. Service tax is not to be charged. 2. You can pay directly the exp. secondly you can also give them some PDA. so that the employee can make local transport and other minor exp from it. Also try to keep some bill so tht it wont be taxed from employee and employer. 3.  Also Yes you need to pay IT on profit from the transaction. But you have to do accounting accordingly.

Thanks Shivang,

Shall I claim the tax exemption for the expenses ( Boarding, lodgin, local travel, air travel, visa charges and food) towards my employee stay at saudi?  If yes, is it vouchers and allowances are acceptable for tax exempetion?

venki 

You can claim it if you are not charging back to the client. Accounting entries will differ.

IF you are taking reimbursement without profit or jst one bill from client including everything.

If you are going to bare as normal travel exp than you can charge to p&L. you will need hotel bill and all.