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Service tax rules on consultancy provided to us based firm..

amay (Software Engineer) (36 Points)

02 July 2012

Hello,

My proprietory provides software development consultancy to a US based firm. The US based firm pays us in US $. Could you please tell me what service tax rules will be applicable in this case in India?

Thank you,

Amay.

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Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 02 July 2012

In the present case Place of Provision of Service Rules will be applicable. Based on the details provided by you it appears that you are providing service to a person who is not in the taxable territory of India. Hence, in that case service tax liability is to be paid by you as an export of service.