Service tax and exim code - do i need it?

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Jasmeet

ACCOUNTANT

21 Points Posted on 31 October 2012

Hi,

My queries are as follows:

1) Service Tax Registration - I am providing IT services to clients outside India by remotely working for them in India. We work as a small team and are looking to make our business a Pvt. Ltd. company. We have no income from India. All income comes to our bank accounts in foreign currency ( TT transfer) and gets converted to INR in our Indian bank. Do i need to get a service tax registration? Since my understanding is that such transaction may not fall at all under service tax bracket at this stage? If so how can we get exemption in our return filing for this? Please advise?

2) EXIM code - Are we obligated to register as Exporter of services and obtain an EXIM code. We are not part of any STPI or SEZ. Please advise?

3) Are we obliged to do any other registration with or notify to the Indian goverment agencies/ departments?

Thanks,

Jas

Replies (2)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

2886 Points Posted on 31 October 2012

Prima facie on facts narrated this seems to be export of service under rule 6A of ST Rules 1994 as amended till date read with Place of Provision of Service Rules 2012.

I am not aware if you are required to obtain Import Export code.

Regards,

Prasad

Sr. Manager

625 Points Posted on 31 October 2012

if your turnover is above the speicified limits, then your registration of service tax is mandatory. i would suggest don't look at only on the basis of payments of service, also there are exemptions avaliable for small exporters you can take benefit of the same.

in my opnion an it is better to obtain an IEC.