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Service tax on services provided to overseas client

Ashok (Accountant) (44 Points)

18 November 2014

A Pvt Ltd company is providing Accounting and IT services to a US Client. I want to know if total Receipt goes above 10.00 Lac then should I registed with Service Tax and deposit service on receipt above 10.00 Lac. Please clarify.

Thanks

Ashok

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5 Replies

Vinay Garg (Service Tax Expert) (775 Points)
Replied 18 November 2014

Whether Payment is recieved in foreign exchange?

Dilip (chief Accounts Officer) (79 Points)
Replied 18 November 2014

If the total receipts (domestic+exports) exceeds Rs. 10 lacs, you need to get registered with service tax department. Further if your services to foreign client fall within definition of Export of services, you do not need to charge service tax on it.

koundinya (stundent) (56 Points)
Replied 19 November 2014

Yes u have to rigister

Ishan Rojindar (Student) (26 Points)
Replied 19 November 2014

Yes. Any service whether domestic or export if exceeds ₹9 lacs, then registration is compulsory. Service if provided to foreign clients covered as export of service then service tax need not be charged.

Venkatanarayana GM (Partner associate at Hiregange & Associates) (1279 Points)
Replied 21 November 2014

As Vinay Garg sir says "It is better to receive the amount in foreign currency to avoid unncecessary questions from revenue.

it is better to register and show the income under export of services and file the nil returns.

There are few caselaws as well which says that when an assesseee providing only exempted services (export of services) then not required to register under service tax and file the returns as well.

Thanks