tedious problem

First of all, You need to register all the premises wherefrom the company render the services. Alternatively, if the accounts & billing is maintained at central place, say Corporate office, you can avail the centralised registration for all the premises at one place where the accounts & billing is maintained. You need to mention the fact of central registration on ST 1 application. When Service tax is not applicable in J & K, services rendered in J & K are not liable to service tax. Nor it could be includible in calculation of exemption limit.

Secondly, if the 80% services fall under export of service, the turnover for the purpose of exemption would exclude these 80%. But if these service are out of purview of export of service and are taxable otherwise, definitely includible in the turnover for the purpose of exemption. The preceding years turnover decides the taxability of services in current year.

does the following services are in the purview of export of survices

1. website designing for a foreign client

2.preperation of financial reports

3.technical consultancy

Prima facia all the 3 services are covered under export of service Rules except the 3rd which is little doubtful but possibly covered. what is exactly Technical Consultancy? is it relating to consulting engineers services? The ananlysis of service would define its inclusion.

Website designing covered under clause (zzzzd) & Preparation of financial reports covered under (zzzq) of the clause (105) of section 65.

in my opinion Technical Consultancy should be covered under 65(105)(g). in export of services rules it falls under Rule 3(iii). for detail u may refer Circular No.111/05/2009-ST.

The opinion of Vishal Gill will stand correct if the company is providing technical services in the nature of services provided by a 'Consulting Engineer'. Clause (g) of sub section (105) of sec 65 has a very wide scope but restricted to the service performed by a qualified engineer or a diploma holder in engineering stream. If the technical services are in the nature other than the services provided by a consulting engineer the opion of Vishal cannot stand and the service could be defined according to its nature.