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Service Export Service Tax Exempt Details Required

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Basu S

Business

25 Points Posted on 27 April 2021

Service Type :

1. Online information and database access service and/ or retrieval service through computer network.

2. Information technology software service

I think above mentioned both Services Export to international clients was under exempted category.

But while I am dealing with service tax department they are creating issues.

want to know few details - exempt rules, section number, notification number and date etc..

So any one pls able to help me pls..?

It's urgent.

Replies (5)

Quick Summary

This discussion seeks urgent clarification on service tax exemptions for exported online information, database access, and IT software services provided to international clients. The user is facing issues with the service tax department and requires specific exempt rules, section numbers, and notification details. Advice suggests these services, when exported to clients outside India, are considered zero-rated supplies under GST, with the place of supply being outside India, and therefore not subject to GST. Relevant sections like 13(12), 14, and 16 of the CGST Act are recommended for reference.

Ayush Chaudhary

38 Points Posted on 27 April 2021

It depends whether you are using the above service for personal purpose or business purpose.
1) Business Purpose: Not exempt. RCM applicable
2) Personal purpose: Completely Exempt

Basu S

Business

25 Points Posted on 27 April 2021

We are not using.. we are selling those services to international clients..

Ayush Chaudhary

38 Points Posted on 27 April 2021

As I suppose the International client isn't registered in India, this is a case where You (Supplier) in India is providing service to Unregistered Client (Outside India), then as per Place of supply concept, it is service provided outside and Place of supply is outside India. It is an export of service.

Hence, GST does not apply to your service. These are considered zero-rated supply in GST.

You can refer to section 16 of the CGST act.

Basu S

Business

25 Points Posted on 27 April 2021

Can you pls provide any supporting legal docs against that. Department need any type of notification number date etc against that.

Need help..

Ayush Chaudhary

38 Points Posted on 27 April 2021

Sir, there is no separate notification issued by clarification fby CBIC for this.
You can refer to:
1) Section 13(12) and Section 14 - Place of supply
2) Section 16 - Zero rated supply.
You can quote the above sections in your explanation which will make your stand relevant and as per law.