Service tax on export of services

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suman

consultant engineer

21 Points Posted on 01 August 2014

Hi,

I provide consultant services to an US based technology company and get the reumneration on a monthly basis. Does the service(i.e software service) rendered by me from india come under the purview of service tax ? Or does it fall under export of services which will be exempted from taxation ?

Thanks,

Suman

Replies (2)

Saurabh Maheshwari

B.com ACA

4340 Points Posted on 01 August 2014

As per Rule 9 of Place of Provision of Sevice Rules,2012- in case of Online information,retrivel&data access services the place of povision of service is location of service provider-i.e India in your case.

Therefore, the service rendered by you is not export because its Place of provision is India and therefore taxable.

Vikas

1245 Points Posted on 04 August 2014

I disagree with Saurabh,

Saurabh – please refer to the meaning and clarification for the Online information and database access or retrieval services; it merely includes access or retrieval and not consultancy. Hence, a software consultancy would not be governed by Rule 9 and instead would be classified under Rule 3, wherein the place of provision is the location of service receiver.

Suman – If your services are in relation to software consultancy, then it would not be taxable. (refer the aforesaid explanation)