Software service export

In order to constitute export of service following are the conditions.

1. Location of serice receiver is outside India

2.Location of service provider in India.

3. Place of provision of service is outside India.

4. Consideration is received in FE.

Generally, place of provision of service is the location of service receiver. Assuming that software developement is not falling under defnition of "online data and information service". Sbject to all this, your service is export of service.

Thank you so muich both.

What if 50% of the revenues comes under this export and the rest are domestic? Do we need to pay service tax on only that 50% domestic revenues or on 100% of the revenues?

Only on 50% of the revenue which pertains to Domestic Service.

Thank You. Could one of you please provide me with the official clause document mentioning this and/or the Clause number pertaining.

Thank You.

There is no one document which will give you all informtion you require, you will have to understand service tax law to get your questions answered

You need not pay service tax as you will be covered under export of services, as explained by CA Unnikrishnan Nair.

Originally posted by : RENGARAJ R.K
	You need not pay service tax as you will be covered under export of services, as explained by CA Unnikrishnan Nair.

Thank You  RengaRaj, One clarification,

I was talking to a CA today and he said, IT export services are currently not exempted from Service tax as the rule is yet to be implemented (in the next 10 days or so), is that True?

If not, could you please provide me with the details of the exemption, as since when we have it, any pertaining Clause numbers, documents etc.

Appreciate your help.

Thanks.

Dear Experts

We need to develop a software for  a US based client. Development will be in India but the implementation will be done in US.

Rule 7 of 'Place of Provision of Service' Rules talks about provision of service at more than one location. By virtue of this rule

1) is the development activity taxable in India under service tax or the complete project (development and implementation) will be taxable in India

2) OR, the complete project (development and implementation) will be deemed as export of services and subject to NIL service tax

Dear Experts

We need to develop a software for  a US based client. Development will be in India but the implementation will be done in US.

Rule 7 of 'Place of Provision of Service' Rules talks about provision of service at more than one location. By virtue of this rule

1) is the development activity taxable in India under service tax or the complete project (development and implementation) will be taxable in India

2) OR, the complete project (development and implementation) will be deemed as export of services and subject to NIL service tax