I represent a translation agency in India. I have a question regarding service tax (whether i am liable to or not).
Here is the situation -
1. I have a client outside India who sends me a translation contract to be translated from Language A to Language B. (export of service)
2. I hire a freelancer from outside India to perform this task. (import of service)
3. My client pays me in USD.
4. I pay my freelancer in USD.
The question is that the export of services is exempted from service tax. But import of services is deemed liable. But in my situation, i am importing the services to eventually export the service (translation). So am i liable to pay service tax in India?
Please tell me if i am clear enough or i would explain in more detail!