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service tax on foreign work

Service Tax (Legacy) 1835 views 4 replies
hello experts
Please help me with this query
I am a freelancer based in chandigarh. I am basically an architect but my business is related to graphics and computer visualization services to clients. Now i have some of my clients in US and canada and they outsource the work to me and then pay me accordingly.i work online with them. now i want to know as i am liable to charge service tax, do i charge service tax from my foreign based clients? there are 2 situations my one client is settled in US but he has a bank account here in Chandigarh. once the work is done i get the DD from this bank locally. he gets his payments from US but he gives it to me through a local bank. I am sending my bills to his local office address only in INR format. Do i charge service tax from this client?
Second situation is one of my clients is paying me directly from CANADA thru western Union. Does it matter if i receive CASH or Cheque from western union as all money from Western UNION is already white. Do i charge service tax from them.They haven't asked for any bills yet but eventually they will. So should i bill them in Dollars and send it on their office address in CANADA?
Whats the best way to deal with this situation?

thanks
Replies (4)
HI, The services for which you receive a local INR cheque would attaract service tax. As service tax is exempt on the export of services with one conditions that the amount received for the services should be in the foreign currency. For your billing to Cannada if the amount received through western union money transfer is the transfer of foreign currency and that services are being outside India, so that would fall under export of services and so no service tax applicable.
thanks ravi ji can u tell me about how to bill them Should i bill in dollars and the bill should be sent on canada address? an what should i tell my this client who is paying me locally in INR in order to save his service tax? Thanks

Whether tds is deductable towards western union money payment

good education and clear discussion.


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