24 July 2013
Recruitment of persons for a company in Malaysia and the payment for this service is received in dollars. Whether service tax is applicable on such service or not?
24 July 2013
In my opinion, only export of services are exempted and your recruitment services is doubtful under export category. In order to claim exemption the following rulings are in existence under the Service Tax Act.
* Service provider is located in taxable territory;
• Service recipient is located outside India;
• Service provided is a service other than in the negative list;
• Place of provision of the service is outside India; and
• Payment is received in convertible foreign exchange.