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St on foreign advertisement

Queries 391 views 1 replies

Raj

N/A

24 Points Posted on 05 October 2014

hi,

As we know from 1st oct service tax is imposed on online services. I am running a website and sell advertisement directly to a client based in Canada. They pay me through wire transfer in US dollars. My website is not used in india. As i am providing service to a company outside india is that considered as export of service? Do i have to pay any service tax?

If not do i need to file tax once and ask for refund later?

Replies (1)

Kashish Gupta

B.com (H) ACA

368 Points Posted on 09 October 2014

Dear

To determine whether service tax is leviable we have to decide its place of provision...in your case place of provision of service is at location of service receiver...I.e. In Canada which is a non taxable territory under service tax...hence service tax is still not applicable on you

Further you need not to obtain any registeration under service tax....but if you are paying service tax on any service used in providing services to client in Canada then to claim refund of that service tax you have get yourself registered and thereafter you can apply for refund.