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Service Tax Registration in case of Export of services

yogesh (chartered accountant) (23 Points)

06 November 2021

Hi,

My client is exporter of service. He has turnover of 12 lakhs (all exports) in FY 15-16 and 14.5 lakhs (13 Lakhs export, 1.5 lakhs domestic) in FY 16-17. He has been served SCN by service tax department on the basis of turnover details from his ITR.

My queries are

1. Does he supposed to get register for service tax and file the return?

2. Do he required to pay taxes on domestic sale of 1.5 Lakhs in FY 16-17?

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4 Replies

CA Raj Doshi (Practising CA) (8723 Points)
Replied 07 November 2021

1. An exporter of services is not liable to pay service tax, thus exporter service provider is not required to file
service tax return in terms of Circular No.97/8/2007-ST dated 23.08.2007 reproduced below
“The service tax return is required to be filed under Section 70 of the Act read with rule 7 of the Rules,
by "any person liable to pay the service tax".

2. not sure of the answer.

CA Raj Doshi (Practising CA) (8723 Points)
Replied 07 November 2021

HOWEVER, registration is compulsory In your case

yogesh (chartered accountant) (23 Points)
Replied 07 November 2021

Thanks for the clarification

Raju Singh (Student) (2 Points)
Replied 09 October 2022

Same here. One of my clients was having an export of 10.xx Lac (Software) and Local business of 8 Lac 2015-16. He had not registered with service tax, because He was not liable to pay service tax (local services revenue was under 10 Lac).
Now He has got SCN (in 2020) and a personal hearing notice (Nov 2022). Will he have to pay penalties and service tax? It's really confusing about the registration of export services. Can anyone help with this?