banner_ad

Service tax on services rendered abroad

Queries 1692 views 5 replies

Hi All,

Greetings !! I run an Organization providing IT staffing services to USA & USA based companies. I have a doubt if my company is eligible to pay Service Tax where :

1. We get payment in Forex.

2. My Organization is not involved in any business in india where i serve & recieve payments from here only.

3. My clients & their organizations dont have any root or sister concerns based in india.

4. We do not apply service charge while invoicing our clients.

5. we have transacted 17 Laks in this financial year.

I tried clearing my doubt with many charted accountants, few of them say "After an amendment in ST laws, services outside india are not under ST" but  few opinions are unlike it.

Please guide

Thanks

 

Replies (5)

Your service will come under Manpower Recruitment service.

However if service is exported , there is no service tax liability.

 

well as per service tax law any service which have been rendered outside india will be outside of the perview of service tax so in your case you dont need to pay any service tax

 

HI Shawn

 

Agree with others that no service tax is payable by you, since yours is a 100% exports business.

My suggestion is if the amounts are material you should claim refunds against the service tax paid by you, like Rent, Internet.... by registering under service tax.

This is just a suggestion and again if the Nos are material

Regards

Prasad

9611802177

 

 

May I enquire from Prasad what is the process of applying for refund of input service tax paid for providing exempted output service. Is it through rule 5 of cenvat credit rules or export of service rules -- form A or Form ASTR .

Regards,

DIpjyoti

It is applied in Form A

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details