Applicability of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2013 Dear All,

I have one query.
We have provided service outside India.our customer is Indian company. now we want to raise invoice in INR
whether Service tax will be levied/applicable?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 August 2013 Yes. it is applicable. please refer rule 6A

As per Rule 6A of Service Tax Rules, as inserted w.e.f. 1-7-2012, a service shall be treated as export of service when all following conditions are satisfied – (a) the provider of service is located in the taxable territory (b) the recipient of service is located outside India(c) the service is not in negative list of services (d) the place of provision of the service is outside India (e) the payment for such service has been received by the provider of service in convertible foreign exchange, and (f) Service provider and receiver are not merely branches of same person.

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2013 Can it be not treated as Exempted Service??
Thanks in advance

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 September 2013 yes. it cannot be treated Export of service, hence not exempted

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2013 thank you