Query in regard to Service Tax [Export of Services]

This is an export of service, and hence no service tax is required to paid on this service.

The exporter of this service tax can claim rebate/refund of Central Excise duty/service tax paid on inputs and input services.

It appears that service provided by the Indian company has been used in India and therefore such service cannot be considered as export.

Whether service provided under business auxiliary service by a subsidiary company in India on behalf of foreign holding company is considered as export of service ? After providing the service on the instruction of its only client which is also its holding company, the subsidiary private limited company raises its consultancy invoice on the holding company and receives the foreign inward remittance. Kindly reply citing the provisions of service tax laws. Thanks.

The question of subsidiary company vis-s-vis holding company is irrelevant as both are seperate legal entity.

Well, Dinesh- the quetion is very clear, the service receiver (foreign buyer) is outside india and the services are being consumed outside India.

Thus as per the definition of export, as per Export of Services Rules, the transaction is a transaction in export of services and eligible for benefits as export of services.