softwere service provide outside india it is taxable?

It will qualify for export of service without payment of service tax only under following circumstance:-

1) The service is not used by the recepient for his business in India.

2) the recepient should not be in India. Even though you are providing service to him from India, you have to deliver the service to him abroad in any manner (internet, on CD or whatever).

3) Your payment should be received in foreign exchange in India.