Service Tax Exemtions for Outsourcing Services

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Dear Forum Members


I am a call centre owner.

I have a query and any help will be appericiated.

I am working for a UK based client. I am not charging any service tax from him. My company is a propertior firm.

I do have my company service tax number.

I want to know as i am not charging (i cannot charge as per the agreed pricing for the services intially with the client) the service tax from the client, but i know that i am liable to pay that on the total amount recieved in my current account.

So if i will pay that from my own that will be a big loss for my business.

I want to know the good option to handle this or is there any examptions for the service tax which i can avail for bpo services / telemarketing services / outsourcing services / software support services / information technology support services. etc.

Please help me out with this.

Thanks in Advance

Prakash Ghai

Director

Q 2 Serves Inoftech

+91-9650337878

Replies (6)

 

It will exempt from service tax because service is provide outside of india… but the payment should be recd in foreign currency its condition under service tax ….

All the above services seem to be taxble under BAS or IT services. But if the recipient is situated outside India and payment received in FE , it amounts to export of service and hence exempted.

Originally posted by : Unnikrishnan Nair N

All the above services seem to be taxble under BAS or IT services. But if the recipient is situated outside India and payment received in FE , it amounts to export of service and hence exempted.

I am providing service from india to a UK based company, for which the uk company send me the payments in gbp which comes in my current bank account in rupees after conversion in rupees.

 

It this all done and as a service provider i am eleigible for service tax examption or any other thing is required to do.

 

Please reply

 

Thanks

you are eligble for service tax exemption..........

Dear Forum Members

 

Today i met with a CA... he is saying that it is not exempted ...it is only exempted if i am providing services from outside india....i am tooo confused and worried about this....kindly help me and give me the solutions for this...as after discussion with you through this forum i have not submitted my service tax of any quarter from 1st april 2011 till yet....the total money recieved in my account is approx 26 lacs till yet.

 

Kindly help me in this.....waiting for your replies.

Dear Sir,

Our company's hospital X-ray machine repaired by a person and now he is operating that machine and giving us contribution of Rs. 10 out of Rs. 100/-.

I want to know whether service tax will be applicable on this or not?

Sumit Sodhani.

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