Services tax on call centre services

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Sushant Mahajan (Querist)
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27 August 2013 Will provisions of service tax apply on an Indian co. providing call centre services to a USA based co. for its customers in USA?

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 August 2013 It is import of service and accordingly service tax is NOT applicable.

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Sushant Mahajan

Sushant Mahajan (Querist)
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29 August 2013 But, since the Indian co. is providing outsourcing service to a USA based co., doesn't it fall in the ambit of service tax and isn't it an export of service?

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 August 2013 Sorry it is an export. Meant to write export and wrote import by mistake.

Since it is an export, service tax is not applicable.

Service tax is applicable on import of service.