09 December 2011
a pvt company engaged in IT HAS done20 lakh worth overseas contract and has done7 lakh worth local work in the above case what would be the service tax liability the 20+7=27 lakhs is the turnover of the co for the entire year. please give opinion the overseas amount is received in us$
10 December 2011
As per Rule 4 of EXPORT OF SERVICE RULES, 2005 Any service, which is taxable under clause (105) of section 65 of the Act, may be exported without payment of service tax. Thus you may export services without payment of service tax as per provision of Export of Services Rules, 2005. However u have to pay service tax on the value of services provided in India as per provision of Finance Act, 1944 and rules made thereunder. Important Note: If you are not able to utilize the CENVAT credit then you may claim refund of same by filing refund application within time specified and as per procedure under NN 05/2006-CE (NT) dated 14.03.06.
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