if a nri provides technical consultancy to an Indian for a project outside India (export of service) and gets paid by the Indian then sec 9 of IT rules imply that the income does not arise or accrue in India and hence no TDS. The question is if this service provided by the NRI is a non taxable service then does service tax through reverse charge mechanism apply for the payments recd by him from the Indian entity?
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Service tax applicability
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If you read the taxation guide it says service tax liability depends where the services are actually consumed. As the same is consumed outside india. Reverse charge wont apply.
thanks...but then a question arises.If the help for this export of services were provided by someone from India (call it say input services) then the exporter has to collect ST from him (and get credit for it later)..here also the services are finally consumed outside India but ST rules say collect also from input service provider and get credit..pl clarify.Thanks
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