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Query

sanjay (accounts officer) (24 Points)

25 December 2012  

i just want to cofirm is service tax applicable to services rendered outside country by our agent on our behalf and our billed to us in foreign currency same here in india we billed to our clinet in INR .


 6 Replies

CA Hareesh ( ) (1517 Points)
Replied 25 December 2012

the application of service tax depends on the location where the service is consumed.. since as per your information, the service is provided outside India the service tax will not be applicable, irrespective of the provider, or billing, or currency details..

CMA RAVI (ASSISTANT MANGER - FINANCE)   (478 Points)
Replied 25 December 2012

Service tax is not applicable in the following case as the services are used outside India as to best of my knowledge. If wrong correct me.

(Guest)
Originally posted by : sanjay

i just want to cofirm is service tax applicable to services rendered outside country by our agent on our behalf and our billed to us in foreign currency same here in india we billed to our clinet in INR .

 

hi

AS FAR AS I KNOW

THE SITUATION GIVEN BY YOU IS COVERED UNDER

"EXPORT OF SERVICES RULES" (service provided outside india + consideration receieved in foreign convertible exchange =export of service)

AND HENCE MADE EXEMPT

 

although the above written comments are correct logically

but this has been covered in rules as export so that input tax credits can still be taken by service provider

 

waiting for other (professional) comments on this answer

 

1 Like

nimish solanki (IPCC CLEARED) (108 Points)
Replied 25 December 2012

Hi

The export of Service rules have been removed from 01 /07/2012...

At present , Place of Provision rules covers this situation.

The place of provision of service is place of service recepient. SInce in your case Service receiver is outside India,it is not taxable service.

1 Like

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com )   (3414 Points)
Replied 26 December 2012

Not only, POPSR 2012 , but also six clauses Rule 6A of ST Rules 1994 govern export of services.

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)   (3456 Points)
Replied 30 December 2012

agree with solanki


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