18 November 2013
ONE OF MY CLIENT PROVIDE TELEPHONIC ENQUIRY SERVICE FROM HIS INDIAN OFFICE TO HIS FOREIGNER SISTER CONCERN'S CUSTOMERS ON BEHALF OF HIS FOREIGN TOLL FREE NUMBER,
WHETHER THIS SERVICE IS UNDER EXPORT SERVICE OR NOT FOR SERVICE TAX
19 November 2013
There is no service tax on export of services.
To qualify as export of services the following conditions should exist:
(1) The service provider is resident in India.
(2)The service is provided outside India, either physically or electronically.
(3)The service recipient is not resident in India and has no branch, representative, or other offices in India.
(4) The consideration for the service rendered is received in convertible foreign exchange in India through proper banking channels i.e.either by way of wire/money transfer of foreign currency cheque / DD / LC.
From your query it is not very clear whether the foreign concern uses its Indian sister concern's address as a resident, representative or branch address. If it does, even if the other conditions are satisfied, the service rendered will not be treated as export of service. Otherwise the service rendered would be export of service and not subject to service tax.
Input services utilized for export of service is CENVATable and the credit can be claimed as refund.
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