Dear member / expert
Ours is an IT company, we have the product where by we buy activation code from Overseas Company and sell it to Indian as well as overseas customer. This is not a software sale and a code is alpha numerical combination which we sent through email to the customer.
The same get activated by the customer on the Overseas company's server which are located out of India and an e-certificate will be issued by an overseas company which will be affixed on customer's website. There is no paper or hard copy certificate will issued by us or the overseas company.
In accounting terms, we buy a code from overseas company and settled their bills through forex remittance.
and the said code will sold by us to the Indian and overseas customer and we received payment from customer in INR and forex.
PS. Code is not the material nor the service render. In above case the service provider is the overseas company and end user is Indian or overseas customer.
In such case do the service tax is payable or not? if yes pl share under which service head we need to registered, if not than does the any other tax will be applicable.
Request you to give your details expert advice/ opinion.
Thanks in Advance, I do appreciate your efforts and time spend in this regards.
CAclubindia
