Professional services to nri

No but the services are rendered in India.However the person paying is outside India.Say for eg I am providing some services to NRI but services are in India but instead of salaey he is paying me professional service charges

Can you please explain the Nature of Service. The nature of service will detaermine the leviablity of Service tax.

If you treat this as Professional Service:

Then he place of provision of service would be Place of Service reciver which is ooutside India in or case (Rule-3 of Place of provision of Service Rules2012)

If you treat this as Salary:

Then no taxability arise because it is an employer and employee relationship and thus out of the ambit of Service Tax.

Therefore, no service tax levied in any case. I would recommend consider the Income tax point.

Regards

Thanks a lot.Now as a professional service provider i am allowed to deduct expenses right or else go for deemed profit section.So now i can ascertain which is more beneficial from Income tax point of view taking salary with few allowances like HRA etc or to go for professional servie.right?

Yes you can. But please do with care. I would not be the right person to help on Income tax points.

Regards