Service tax eligibiity for part local part foreign income

Hi,

If a firm earns for example, Rs. 25 lakhs via Foreign clients and less than Rs. 1 lakh via local clients, in such a case, is the firm eligible for paying service tax?

Please let me know.

Replies (2)

if place of service is out of india than no liability arises but if  service provided to foreign client in india than it is taxable. so place of service provided is important. As per service tax , Section 64(1) of the Act provides that Chapter V of the Act apply extends to the whole of India excepts the State of Jammu and Kashmir.

Originally posted by : suraj gahlout

if place of service is out of india than no liability arises but if  service provided to foreign client in india than it is taxable. so place of service provided is important. As per service tax , Section 64(1) of the Act provides that Chapter V of the Act apply extends to the whole of India excepts the State of Jammu and Kashmir.

The service was Software development work doing for foreign clients in India. But as far as I know, if 100% of revenue is from such foreign clients, then there is no service tax

Is it true? Can you please confirm?

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