Hi Guys.
I'm the director of a small IT service provider PVT LTD company.
We provide IT services like website designing etc to non-indian clients across the globe.
We get paid for our outsourcing services in USD/Euros. This amount gets settled in Indian bank in Indian Rupees.
Do I need to pay the service tax even if the total payment is >10 lakh INR.
Please help and clarify my doubt.
Thank you so much !!
Place of provision of specified services.- The place of provision of following services shall be the location of the service provider:-
(a) Services provided by a banking company, or a financial institution, or a non-banking financial company, to account holders;
(b) Online information and database access or retrieval services;
(c) Intermediary services;
(d) Service consisting of hiring of means of transport, upto a period of one month.
Your service will fall under Rule 9(B) and Place of provision of service is the place of Service Provider(ur co.,)
SERVICE TAX EXCEMPTION LIMIT :::
| Preceeding F.Y | Curren F.Y | ST liability |
| Less than 10 L | Less than 10 L | No ST |
| Less than 10 L | More than 10 L | ST applicable after 10 L |
| More than 10 L | Less than 10 L | ST applicable from FIRST Rupee(No excemption available) |
well explained by Ramsai Sir .....thanks
CAclubindia
