Service tax while selling services outside india

I am an independent web designer and I want to sell online my web designs outside India (for example USA). Is there and tax condition I should care for in this case?
Replies (7)
As per Section 66 D of the Finance Act, 1994, 'there shall be levied a tax (hereinafter referred to as the service tax) at the rate as prescribed on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed. As per rule 3 of the Place of Provision of Services Rules, 2012, 'the place of provision of a service shall be the location of the recipient of service'. Your service does not fall in any of the Rules 4 to 11 of the said Rules or in the negative list of services or in the list of services covered by any exemption notification. In your case, the service recipient is located abroad and so, the place of provision of service is a non-taxable territory. Therefore, you need not pay service tax on such services.
hope, that will help u
harshit
+918955737073

Thank You Harshit, for great help!

anytime brother !

Even we can claim refund/rebate on the input service tax which we paid on the input services if the deifinition of export of service is satisfied.

Hello Harshit Kabra and Mohammad Rasool Baig, Thanks for your kind help!

In this case if i do not need to pay tax then do i need to register my business as a firm/company/prop. in india or elsewhere.

(I want to sale only non-physical products like web design, logo design etc. and all revenues will come from outside India)

Thanks in Advance,

Sunil

if u are claiming exemption by any mean for ur services, u need to file a nil return, containg info abou ur services and details u provide, yahh u not mandatory required to obtain regn. no. but in case u do, u can claim exemption.
further, u will need ur pan (individual, if u not registering ur firm )
u can file as individual registration instead firm/co. for the said purpose.

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