Service tax on Export of Services

A Pvt Ltd Company based in India provides back office services like accounting, MIS , Billing etc to a foreign company and receives fees in foreign currency (USD). What is the implication on the commpany as far as Service tax liability is concerned ???

 

Replies (4)

Dear Pradeep,

If the services to a foreign Company are provided from India and consumed out side India and payment received in forign exchange then it it is a case of Export of Services which is exempt of Service Tax. 

 The only question which would lie in your case is whether the activities done by you are actually consumed out side India or not. 

Any more clarification you can revert back.

Regards

Jeevesh Mehta

 

 

 

Is registration for service tax necessary in this case?

No it is not nessessary if you are sure that its an Export of Service. 

 

Jeevesh

There is a modification  vide Notification No.30/2007 dated 22.05.2007. It had deleted "provided outside India" and changed to  "done outside India".  So, if this service is done from India, it become service taxable. 

Please see if there is any  rule to counter this

 

- Ignesius

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