Service tax on export of services out of india

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2012 I have a private Ltd. co. It is rendering "Content Management services", Data feed management, online marketing services, E commerce marketing services, I.T.Support services (support to the website, backhand programming ) etc. to a company in USA. Every month it raises its invoice on the USA co. and it got its payment in convertible foreign exchange in India in its bank account.

The main server of the foreign company is in USA and we are using that server to work. Also the foreign company is processing the order which are received only from foreign countries and not from india. The end user of the products of the foreign company are from foreign countries only & not from India.

In this case, kindly sugges me whether my company is exemt from service tax ? Can you give me some circular reference in this regard. Also whether my company is exempt from taking registration of service tax or whether it is reqd. to take regn. and make payment of service tax and then take refund after exporting the services. Kindly guide me at the earliest.
Thanking you.

Kirit Premji Dedhia

Kirit Premji Dedhia (Expert)
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30 August 2012 W.e.f. 01.07.2012 rules as to export of services have been changed.

Looking at the description of the services you have given , it seems these services are not taxable in India. See Place of Provision Rules. You need to take registration , but no need to pay service tax ... in fact you are entitled to claim refund on the service tax paid by you on the input services.....