Receipt in Foreign Exchange

Others 1015 views 1 replies

M/S A (Indian private limited co.) doing repairs and maintenance service in India.

 

Also the company A on behalf of M/S F (Foreign Co. having no permanent establishment in India) does

a) Installation and after sales service i.e. repairs and maintenance (of product supply by M/S F) during warranty period in India

b) Marketing their products in India and received sales commission.

 

Billing for these services are done to M/S F and payment is received in convertible foreign exchange.

 

Whether service tax is applicable or it is exempted Export Services?

Replies (1)

Dear Bimal ,

To Identify Whether Service Tax is Applicable on this Service check the Exim Category of the Service and Consider what is the basis for Claiming Exemption for Export Services.

Generally therecan be two Basis!

1) The Person to whom service is Provided - If your Service Falls Here - Then This Service is Exempt being Export of Service.

2) The place at which Service is Provided - If your Service Falls Here - Then This Service is Taxable.

Hope That Solves your Query!

Regards

Ankit Gulgulia


CCI Pro

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