04 January 2014
we provide payroll processing services to a foreign company and receive fee in foreign currency my question is is it comes under EXPORT OF SERVICE?? If not under which head it taxable to service tax.? Answers please.....
As per Rule 6A of Service Tax Rules, 1994, provision of any service provided or agreed to be provided shall be treaed as Export of Service if following conditions are satisfied:- 1. The provider of taxable service is located in taxable territory. 2. the recepient of service is located outside india. 3. the service is not a service specified in the negative list [Section 66D]. 4. the place of provision of the service is outside india. 5. the payment for such service has been received by the provider of service in convertible foreign exchange.
The place of provision of a service shall be the location of the recipient of service, in your case since service recipient is situated outside India hence it amounts to Export of Services.
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