Service rendered to a person outside india

 

Dear Neeraj,

By virtue of general Rule 3 of Place of Provision of Service Rules, 2012, if service recipient is located in taxable territory, then service will deemed to be provided in taxable territory and service tax shall be payable thereon.

Conversely, if the service provider is located in the taxable territory but the recipient is located in the non-taxable territory, then service tax shall be not be leviable on such services as its consumption is outside India.

However, this may not be an exact answer, you need to elaborate the nature of services rendered by the resident individual in your case so as to ascertain if service tax will be levaible or not.

 

If you are providing taxable service, get ST registration and you are liable for service tax after crossing your turnover limit of Rs.10 Lakhs.  If the aggregate value is within the said limit, no tax is required to pay. Non-taxable concept is not applicable to outside india.

Regards,

JMS

Hi Rashmi Thank you for your response. Just in continuation of the same case study, It is a consultancy service via a service contractor agreement between the foreign co. and the resident individual.annual gross receipts being less than 9 lacs. The resident will issue an invoice at the end of every month and the remitance in foreign currency will directly come in his bank account.