07 January 2009
I Have a query related to one of my client running call centre in India and exporting his service outside india through eletronic medium. My query is whether it'll attract import and export code registration and if yes then what are the advntages after registration? And is there any necessity to get him registered under service tax act as the client is getting remmitance in dollars. kindly let me know the above as soon as possible.
07 January 2009
Normally to export or import any goods, as opposed to services, you need IEC code. Although it is not mandatory to get IEC code in your case, it is advisable to have one. To take any benefit for service export under Foreign Trade Policy (lately the policy has formulated incentives for service exporter) you need an IEC and RCMC. In your case, you are exporting services which are exemed from service tax, and as such service tax registration is not required. However, if you plan to take refund of excise duty and service tax paid on inputs & input services for your output services, which you are exporting, you need to take service tax registration.
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