Sir
we have an export order for engineering design service.Shall we have to pay any service tax to indian government, if we accept the order and raise invoice on foreign client.Kindly let me know the exact ruling in this regard which would be helpful to me for taking up this order.
As long as the recepient is outside India and you are going to recive the consideration in convenrtible foreign exchange, the service would be considered as an export of services and you would be not be liable tp pay any servic etax. Ensure clairty in invoicing and inward declarations.
In fact the input services used for provding such services are eligible for refund. If subsntaatial you could examine that also.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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