SERVICE TAX ON INCOME RECEIVED FROM FORIEGN COMPANY

IF WE RECEIVE INCOME FROM A FOREIGN COMPANY TO AN INDIAN COMPANY  FOR ENGINEERING SERVICES DO WE NEED TO PAY SERVICE TAX ON SUCH REMITTANCES

Under the export os ervice rules 2005 - consulting engineering services provided to a recepient outside india and received in convertible FE is excluded from liability. In fact the input services paid , central excise duty paid on goods used in provding such services would be eligible for refund.