Service tax liability

If the service is export of services then you have the option of first charging service tax and claiming it back by way of a refund. 

If the company is also incorporated abroad then there is no need to pay service tax as you can claim export of service 

1) In the given case, Service is provided by the Indian Co. to Foreign Co. in India, therefore Service Tax will be levied on the bill raised on the Foreign Co. for the Services rendered.

2) My answer wouldn't change even if the bill is raised in US Dollars ($).

Regards,

Devendra 

Service tax applicable as services are provided in India.

Service tax applicable as services are provided in India.

(i) yes.service tax has to be charged.

(ii)answer will not be change.

ya agreed with devendra

service tax is charged ... even if the invoice is in us dollars

YES ..service tax  is charged

What if the service is rendered to a foreign entity (example- in Hospitals treatment provided to foreigners) and hence classified as deemed export. In any case there is no service tax on medical treatment. However the situation changes if the bill is raised to a 3dr party (intermediary registered in India that manages all the arrangments for these patients). Can the bill be raised in dollars to this 3rd party?

As we know that service tax is a consumption based destination tax. So if service is consumed outside india, I think service tax should not be levied on such transaction. Answer would be same even if bill raised in US $.

Thanks Lokesh! However need the answer to the second part of my query related to 3rd party.

Can the bill be raised in dollars to the 3dr party (intermediary registered and operating in India that manages all the arrangments for these patients)?This intermediary receives payment in dollars.