Prasad (Sr. Manager) (617 Points)
21 December 2011We are appointing a consultant who will be based in US, we are billing the customer in US for the services. The services will be rendered in US and the usage of such services will be in US. The remuneration for the consultant will be paid out from India in foreign currency.
The question is will service tax be applicable, in my opinion since the services are rendered outside India and the recipient of the service is also outside India. Could you please confirm my understanding is correct?
pakeeraiah
(accounts executive)
(25 Points)
Replied 21 December 2011
service tax is not applicable for your services because of the entire work is outside india
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 22 December 2011
In my opinion this is export of service. Export of service deos not attract service tax levy. Ensure that you get the bills paid by foreign exchange thtough international banking channels.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
