Hello everyone,
I am new to CAclub, and have no Finance background. I am requesting you guys to give me any help possible in solving our current predicament. Any guidance on the right path to follow will also be very helpful.
Our agency provides services to clients based outside India. We are registered for service tax. But as of now we do not charge our foreign clients any service tax, as we believed that our services fall under the Export of Services clause (Rule 6A of Service Tax Rules, 1994). We are a relatively small advertising agency, and most of our clients are based outside India. Paying service tax now, will mean the money goes out of our own pockets, and taxing our clients may cause unwanted friction, as we did not mention anything about a service tax to them when contracts were signed.
I have read here https://www.forum.charteredclub.com/threads/service-tax-on-export-of-services.1080/ about the conditions to be met to qualify as export of services, and we meet all of the conditions. My question here is about the second half of instructions where we are required to submit documentation before the Commissioner "before" export of services. How can we possibly do this every single month for each of our clients? Is there any other way to claim rebate?
Can someone please explain what our best course of action is here? Any links, source material, notification numbers, etc would be highly appreciated.
Regards,
Kavita
CAclubindia
