Service Tax-Export of Service Rules

I had a query If a Foreign Company recieves a contract of Overhauling of machinery from Indian Company( Say A ) and the the Foreign Company outsource that contract to the another Indian Company ( say B ). My query is that when the Indian Company ( B ) will raise the invoice to Foreign Company, Will it be treated as Export of Service and accordingly whether we need to charge the service tax.
Replies (5)

Repairs under the EOSR comes under the performance category and the place where the activity takes place should be outside India. In this case since the repairing is done in India there isno export and ST has tobe charged.

Dear Sir Thanks for replying. As per Finance Act 2010, the requirement of services to be used outside india is dispensed with and the only requirement is to receive the Convertible Foreign Exchange. Can we link both the things?

... no point of going into the dispensation of the requirment ...

Follow what Mr Madhukar have said.

 

regard s

 

I agree with what Mr Madhukar have said.

I had a query. My client is providing Back Office and Website maintanence/updation service from India to one of the UK based tour n travel company. They are receiving payments in foregin currency. Whether Service Tax is applicable???

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