We are running a commercial training institute.We are providing International certifications in networking and are the official training partner of m/s Red hat India (P) Ltd.My question is If a foreigner come across india for attending the training and is paying his fees by way of direct transfer from his home country to our bank account which is in foreign currency.The bank is issuing us Foreign Inwards Remittance Certificates.whether we get any exemption from paying tax.
06 January 2014
there would be exemption under export of service rules if the services have been provided outside india BUT question arises as per place of provision rules what will be the place of provision of service from taxation point of view, the answer lies in rule 4 of said rules. and place is where services actually performed i.e, INDIA, i.e, TAXABLE TERRITORY. hence taxable. no exemption.
CAclubindia
