Service tax applicable on consultation services to foreign companies?

Steve (Finance Professional) (27 Points)

04 February 2013  

 

An Indian friend of mine and I are setting up a small LLP firm that
will cater only to non-Indian clients (based in US/Europe) and the
services we will provide will primarily be business consultation
services – wherein we will be helping these companies with:

1. Advice on how to setup and conduct business in India
2. Setting up their private limited companies in India for them (and
being the Director / shareholders)
3. Interviewing and hiring employees for their Indian teams
4. Managing and running their Indian companies

Note that although I am non-Indian, my friend is, and he will be the
Director / shareholder in these companies – I will not be involved in
those aspects.

For the LLP, would these services attract service tax from the Indian
tax department? The clients are based abroad and will be making
payments in USD / EURs and all this will be credited to an Indian bank
(we will cross INR 10 Laks).