Query on Import of Sevices

sir, this is elango, consultant and doing management consultancy for foreign companies, i am receiving payments in usd, can i treat this as export income and avail exemption from service tax?

HI,

Dear Elango:

You are providing management consultancy services to the compnaies outside India and receiving payment in convertible foreign exchange i.e USD. Yes your services would be eligible for exemption under  export of service rules as you satisfy the conditions set out post 27.02.2010 which are :

i) Provision of such service must be to a recipient located outside India

ii) payment for such service is received by the service provider in convertible foreign exchange.

So enjoy the Service TAx exemton on your services.

@ Narsihmhan:

I think the services mentioned by you comes under the head "Technical Testing and Analyses Service under Sub Clause (zzh) of clause (105) of section 65 of the Finanve Act.

According to Rule 3 (ii) of Taxation of Services ( Provided from outside India and received in India ) Rules 2006 for the services under sub clause ...... (zzh).....it would be imaterial whther the service is performed in India or outside India or partly performed in India and partly outside. The service shall be taxable inthe hands of Receipient In india and import of service . 

Your observation right but it should be subject to perusal of above rules.

Regards

Jeevesh Mehta

Taxation & Corporate Law Consultant

Ph: 9811617186

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