Service tax for services provided outside india

Anyone?

Hi,

Can anyone please help?

You have not mentioned anything about the nature of service invovled. However you need to refer "Place of Provision of Service Rules, 2012" to determine taxaiblity of the service. Addtionaly you can avail benefit of export by fulfilling condtions specified in Rule 6A of the Service Tax Rules, 1994.

Originally posted by : Abhijeet Jain
	You have not mentioned anything about the nature of service invovled. However you need to refer "Place of Provision of Service Rules, 2012" to determine taxaiblity of the service. Addtionaly you can avail benefit of export by fulfilling condtions specified in Rule 6A of the Service Tax Rules, 1994.

Similar to case above, I am providing engineering services to US customers.

I have registered as Pvt. Ltd Company in India and only.

Have an IEC in the company name.

will maintain 100% EOU status

Have subscribed for a packeged engineering software from US on yearly basis to be used for executing the projects.

The software maker company does not have offices in India.

I have to pay to the software company for using the software license.

My Question: Will I have to pay service tax in India?

If yes, why?

If no, why?

Please guide. 

On Harshal's Query: As I understand you are providing services to a client based outisde India and also receving services from a software Company located outside India. In case of your output service you can claim benefit under export of service (subject to fullfillment of conditions of Rule 6A of STR, 1994) and not required to charge & pay service tax, however for software services you will be required to discharge service tax liability under reverse charge mechanism as per Section 68 (2) read with Notification 30/ 2012. The service tax so paid can be claimed as Cenvat credit and in case there is no service tax liability on your output services then you can file a refund claim with the service tax authorities.

Originally posted by : Abhijeet Jain
	You have not mentioned anything about the nature of service invovled. However you need to refer "Place of Provision of Service Rules, 2012" to determine taxaiblity of the service. Addtionaly you can avail benefit of export by fulfilling condtions specified in Rule 6A of the Service Tax Rules, 1994.

The nature of services is IT software consultancy where we implement the solutions according to clients requirements.

Eludic and Robin,

Prima facie you are exporting services. Export of services is outside service tax net. As pointed out by Abhijeet, export must comply with the criteria listed out in Rule 6A of Service tAx Rules 1994 read with Place of Provision of Service Rules 2012 effective 1 July 2012. The payment must come to India in convertible FE through international banking channels. Also teh same should come within 1 year from date of export invoice.

Thanks,

thanks.....

Hi Sir,

Have small clarification on service tax issue. Details are below

Place of Goods loading: Singapore

Place of goods discharge : india

Service provider located in india and providing service from Singapore to india.

The Client in india ( we) are asking to bill the charges (Freight + Exwork) to our exporter (Singapore company) in foreign currency. But they are charging S,TAX .

Is service tax is liable even if it is a foreign company in USD ?

PLEASE ADVICE… Thanks

Dear ,

whether services perform in india by an indian service provider to service receiver outside india are taxable as per new Service tax provision w.e.f 01-04-2012. which POPs Rule is aplicable for taxability of such service.

are nature of service provided make any differnce ?