Service tax

Originally posted by : sagar gondaliya
	Yes becus services renderd in india then he liable to pay service tax

I saw this post :

for service tax exemption there should be 1) services should be exported / consumed out of indian territory 2) payment should be received in convertible foreign exchange   in absence of both above, the service tax liability arise and payable.

So services are consumed out of Indian Territory as it is give to a US Client.

And he get payed in USD.

So both conditions match.

Please advice.

Thanks

Dear Sir,

As per Rule 6A of Service Tax Rules, 1994 provision of any service provided or agreed to be provided shall be treaed as Export of Service if following conditions are satisfied:-

1. The provider of taxable service is located in taxable territory.
2. the recepient of service is located outside india
3. the service is not a service specified in the negative list [Section 66D].
4. the place of provision of the service is outside india
5. the payment for such service has been received by the provider of service in convertible foreign exchange.

.As per my view, In your case all the above conditions are satisfied. Hence, it will be covered under export of service and you are not liable to pay service tax.
 

Thanks Daivashala,

The only thing that I am not sure is point 4.

Can we say that the place of provision of service is outside India. As he is giving them service remotely from India.

Shiv