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.
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
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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