Service tax

Hi,
 

We (Pvt Ltd Co) having business of Providing cosultancy to Client.

First time i am raising invoice to my foreign client in INR and i will be receiving payment in INR. 

Kindly advice whether Tax is leviable on provided service?

further What will be the case if 1) i am raising the invoice in INR and will received money in Foreign Currency.

                                                       2) I am raising the invoice In Foreign Currency and received in Foreign Currency.

Replies (3)

It is Export of Service hence exempted from Service Tax.

if the foreign client paid the fees in INR to our company... whether still it is exempt from service tax? if yes please send some notification which says the above.

 

Thank you

Dear Amit,

To claim export benefit First of all place of provision of your service shall fall outside the India in accordance with the Place of provision of service Rules.

Recipient of service shall be outside India.

Payment must be received in Convertiable Foreign exchange. Please collect FIRC & BRC from bank in this regard.

Further, you may get refund from service tax department for CENVAT Credit on input services used for providing export of taxable output services.

 

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