Service tax on foreign currency remmittance

Queries 387 views 4 replies

M Agarwal

Consultant

228 Points Joined March 2014

Hello,
I am currently a freelancer Software/Web developer/consultant residing in India. All my clients reside outside Indian territory and I get paid in USD which I accept via WIRE(SWIFT) transfer to my SBI bank.

To my understand I don't need to pay service tax as per Rule 6A of Service Tax Rules, 1994.

But do I need to register as in total my revenu goes over 10lacs per annum?.

Please note all of it is in USD which is in turn converted to INR by the bank of which I get the FIRC of.

Does EXPORT OF SERVICES 2005 change anything for me?

Does it make any difference if I get salaray for an online job instead of consultancy or devloping software and vice-versa.

Thanks.

Replies (4)

Harshal Fifadra

Chartered Accountant

1489 Points Joined August 2011

You are not required to pay any service tax since all the requirements for a transaction to be called as "export of service" are being satisfied.

No need to take registration since the turnover limit considers the value of taxable services and not exempt services. In your case, the turnover is crossing Rs. 10 lacs,however, the services are exempt services.