Service tax on export of services

please help me out for the foll query:

A company in US has a 100% subsiday in India which provides support services on behalf of its parent company.

The parent company is into SAP imlementation. All the clients are in the US.

1.I want to know if service tax is applicable in India

2.whether this service falls under export of services.

an early reply to my problm will be highly appreciated.

Replies (3)

Required some other details - 1. to whom it is billing  2. When & how it receives the consideration 

Originally posted by :satish mundada
" Required some other details - 1. to whom it is billing  2. When & how it receives the consideration  "


 

ans to Q.1: the entire billing is to the parent company

ans to Q.2: it depeds on the work order and the remittences are transferred direclt thru bank.

The services provided by you could be under either management consultacny or ITSS ( I feel the latter is preferable)

These services are considered as exports if: recepient outside India, used outside India and amount recived in convertible foreign exchange.

 

It appears that all the critereon are met therefore ti should be an export of services.

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