We are a software company engaged in developing add on for accounting software called MYOB. We have only client in Australia to whom we are billing. Our remittances come both in Foreign Currency and Indian Currency. Are we liable to Service Tax, If so On what Basis??. One of our Consultants asked us to pay service tax on amount received in INR. Is that Correct??? Please advice
25 November 2011
Yes it is correct that amount received in INR does not satisfy the criteria of Export under Service Tax provisions. Therefore you should pay the tax on the same to avoid litigation.
CAclubindia
