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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Service tax on services provided to overseas client
Replies (5)
Whether Payment is recieved in foreign exchange?
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.
Yes u have to rigister
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.
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
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