Export of services under stpi

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CA Archana (Querist)
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04 May 2012 I need some articles to read on export of services covered under STPI. Service tax applicability on such units and need to file returns etc.

rajula gurva reddy

rajula gurva reddy (Expert)
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06 May 2012 Export of Services are exempt from payment of Service TAx.

CA Archana

CA Archana (Querist)
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21 May 2012 thanks sir,but still i wanted to read some good articles in this area as some people says that no need to get service tax registration while some advices to get the registration done and file nil returns with department.This creates a confusion.

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CA Archana

CA Archana (Querist)
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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 Understanding the nuances of export of services under STPI (Software Technology Parks of India) is crucial for businesses operating in this sector. Here’s an overview and some resources that may help clarify the confusion:

### Overview of Export of Services under STPI

STPI is an autonomous society set up by the Ministry of Electronics and Information Technology (MeitY), Government of India, to promote software exports from India. It provides various benefits and incentives to registered units, including:

1. **Tax Benefits**: STPI units are eligible for certain tax benefits, including exemptions or concessions under the Income Tax Act and GST laws.

2. **Export of Services**: Many STPI-registered units are engaged in providing software services (e.g., IT consulting, software development, support services) to clients abroad. These services are treated as exports under GST and are typically zero-rated.

### Service Tax Applicability

In the pre-GST era, service tax applicability and registration requirements varied based on the turnover and nature of services provided by STPI units. However, under GST:

- **Registration**: Generally, businesses with aggregate turnover exceeding the threshold limit (as prescribed) are required to register for GST.

- **Export of Services**: Export of services is treated as zero-rated under GST, meaning GST is not levied on exports of services. However, input tax credit (ITC) can be claimed on inputs used to provide such services.

### Articles and Resources

Here are some resources where you can find articles and detailed information on export of services under STPI and GST:

1. **STPI Official Website**: The official website of STPI (https://www.stpi.in/) provides information about the benefits, registration process, and compliance requirements for STPI units.

2. **GST Portal**: The GST portal (https://www.gst.gov.in/) offers guidance on GST provisions related to export of services, registration, filing of returns, and claiming refunds.

3. **GST Acts and Rules**: Reading the GST Acts (Central Goods and Services Tax Act, Integrated Goods and Services Tax Act, etc.) and Rules (GST Rules, 2017) will provide clarity on the legal framework governing export of services.

4. **Tax Advisory Firms**: Consultation with tax advisory firms specializing in GST and international taxation can provide specific advice tailored to your business needs.

### Clarification on Service Tax Registration

- **Nil Returns**: Under GST, even if no taxable supplies (including exports) are made during a particular period, registered businesses are required to file nil returns. This ensures compliance with GST laws and avoids penalties.

- **Consultation**: Given the complexity and specific circumstances, it's advisable to consult with a tax professional or advisor who can provide guidance based on your business operations and the benefits derived from STPI registration.

By accessing these resources and seeking expert advice, you can navigate the requirements and benefits associated with export of services under STPI effectively. This will help ensure compliance with applicable laws while maximizing the benefits available to your business.