Service tax applicability for contracting outside india

Hi,

I am working for an HR.  We are have received an serviceoffer to provide contractor services from india.  Contractors resources are deployed in India while would work on Customer Servers (located outside india) and the services are delivered at onshore (outside India).  We are to raise bill to collect the contractor charges.  Help to clarify the following:

1) Would this attract service tax in India

2) Should I include the Service tax component in the bill if so at what %

3) Can the fee received be treated as Export services if so under which section of Export Services

Request immediate help. as the issue is urgent

Regards

G Anuradha

 

Replies (1)

Hi Anuradha,

From the details that you have provided, it can be said by reffering to Rule 3 of the place of provsions of Services rules, it seems that it in your case it will be treated as a Export of Services because the service provider is located outside India. Therefore such a transaction should not attract any service tax in my opinion. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
12 August 2026
Deputy Manager - Finance

RoamPrime Technologies Private Limited

Bengaluru

CA

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details