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Service tax applicability for contracting outside india

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G Anuradha

MBA

21 Points Posted on 07 December 2013

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)

Jinesh Shah

freelancing industry

52 Points Posted on 07 December 2013

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.