SERVICE TAX CONSULTANT
666 Points
Joined August 2009
Originally posted by :Ignesius |
" |
Hi
I need a clarification on service tax on software service exports. I have a client in US want me provide software testing of their product. They will ship the product on a returnable basis. I have to test it using software (that also they will provide) and report the test results back and also return the product after that.
Is this activity service taxable in India ?.
Appreciate input
Thanks
Ignesius
|
" |
You fall under eligible SERVICE TAX PAYER under EXPORT OF SERVICE Rule
Your will get following three options for paying the SERVICE TAX
(a) Export without payment of service tax and utilise Cenvat Credit for payment of service tax on other services
(b) Export without payment of service tax and claim rebate of service tax paid on input services and excise duty paid on inputs (or forget about rebate as procedure is too complicated and impractical)
(c) Pay service tax on exported services and claim rebate (by this, he can utilise his input credit)