Service Tax for Export of Services (Manpower for Gulf)

In my opinion this transcation should not attract service tax. As per the Circular 141 dated 13th may 2011, 2. In the stated Circular it was inter-alia, clarified that the words, “used outside India” should be interpreted to mean that “the benefit of the service should accrue outside India”. It is well known that services, being largely intangibles, are capable of being paid from one place and actually used at another place. Such arrangements commonly exist where the services are procured centrally eg audit, advertisement, consultancy, Business Auxiliary Services. For example, it is possible to obtain a consultancy report from a service provider in India, which may be used either at the location of the customer or in any other place outside India or even in India. In a situation where the consultancy, though paid by a client located outside India, is actually used in respect of a project or an activity in India the service cannot be said to be used outside India.

Even though my Fee is paid in Foreign Currency?

Originally posted by : Prasad
	In my opinion this transcation should not attract service tax. As per the Circular 141 dated 13th may 2011, 2. In the stated Circular it was inter-alia, clarified that the words, “used outside India” should be interpreted to mean that “the benefit of the service should accrue outside India”. It is well known that services, being largely intangibles, are capable of being paid from one place and actually used at another place. Such arrangements commonly exist where the services are procured centrally eg audit, advertisement, consultancy, Business Auxiliary Services. For example, it is possible to obtain a consultancy report from a service provider in India, which may be used either at the location of the customer or in any other place outside India or even in India. In a situation where the consultancy, though paid by a client located outside India, is actually used in respect of a project or an activity in India the service cannot be said to be used outside India.

Originally posted by : Prasad
	In my opinion this transcation should not attract service tax. As per the Circular 141 dated 13th may 2011, 2. In the stated Circular it was inter-alia, clarified that the words, “used outside India” should be interpreted to mean that “the benefit of the service should accrue outside India”. It is well known that services, being largely intangibles, are capable of being paid from one place and actually used at another place. Such arrangements commonly exist where the services are procured centrally eg audit, advertisement, consultancy, Business Auxiliary Services. For example, it is possible to obtain a consultancy report from a service provider in India, which may be used either at the location of the customer or in any other place outside India or even in India. In a situation where the consultancy, though paid by a client located outside India, is actually used in respect of a project or an activity in India the service cannot be said to be used outside India.

agreed                           

Originally posted by : C.Srinivasan
	I owned a Manpower Recruitment or Supply Agency in Chennai, India. I would like to know the Tax(es) I need to include in my Invoice, while I supply Indian Manpower to Employers in Abroad (Gulf,Singapore.etc). Is there any any exemption possible, in this case, since I will collect my fee (through on-line transfer) in the Employer Country's Currency (AED,SAD,QAR,SGD,..); NOT IN INR.

1) service receipents are indians

2) service is provided in india

3) fees is collected in forex, but at the time of paying, the person is indian, not an NRI

keeping all facts in front, the service is taxable.

however if your payee is "employer" situated overseas, on whose behalf you are providing manpower, then its not a taxable service.

So My Company NEED NOT to pay Service Tax based on the following grounds:

- I am an Indian Service Provider who Physically located in India AND My Service Recipient Companies are Physically Located in Overseas Countries.

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My Another Question is,

What kind of Documents/ Procedures I need to Maintain/ Follow while Recieving Service Charges in Multiple Foreign Currencies from Multiple Clients located in Various Countries?

you have to obtain Bank Realisation certificate for such forex inward remittences, and attch them with your service bills, reconciled, which would prove that these bills are paid by bondfide employers in forex, counter confirmed by indian banks through BRC.