Service rendered to a person outside india

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Neeraj

Works at Nestle

40 Points Posted on 11 May 2014

wht would be the Service tax Implications on a resident Individual when he's recieving payment from a foreign Co. outside india in his account on issuing a monthly service contract invoice.?

Replies (3)

Rashmi

CA Final Student

112 Points Posted on 14 May 2014

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.

JMS

DY.MANAGER -COMMERCIAL

120 Points Posted on 17 May 2014

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

Neeraj

Works at Nestle

40 Points Posted on 02 June 2014

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.