14 July 2010
our comapny has done export of services in the following ways 1) service done in india (programing) but beneficiary is in abroad 2) our employees gone to abroad and provided the services
please clarify the service tax implication..whether any exempt is availale .if payable can we set off aganist the credit or should be payable as cash/cheque (actual payment)PLA payment
14 July 2010
There are 2 parts (a) Programming done in Inda will attract service tax provisions but you can claim exemption under the provisions of export of services provided the amounts are realised in foreign exchange.
(b) For employees gone aborad and provided services there since service is provided outside India and receiver is outside India the same is exempted under service tax.
If in case a if it is payable because you are receiving amount in Indian currency then you can adjust against any amounts available for set off.
CAclubindia
