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urgent - clarification

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SRINIVASULU SURE

CA in Practise

32 Points Posted on 06 October 2009

my client has provided man power service out of india. for the same, my client is receiving the amount in convertible foreign exchage from the foreign country. Whether the client is liable to pay service tax on providing man power service out of india. my client is not a small service provider.

please give me clarification.

thanks.

Replies (1)

Anil Mittal

student

58 Points Posted on 06 October 2009

Hi Srini,

Export of Service Rule, 2005

Rule 3, Sub Rule 2

The provision of any taxable service specified in sub-rule (1) shall be treated as export of service when the following conditions are satisfied, namely:-

1.such service is provided from India and used outside India; and

2. payment for such service [x x x]³ is received by the service provider in convertible foreign exchange

Rule 4

Any service, which is taxable under clause (105) of section 65 of the Act, may be exported without payment of service tax.

Conculsion

So he need not to pay Service Tax.

Anil Mittal