Service tax

This query is : Resolved

Neha (Querist)
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01 October 2012 We recently registered a Pvt Ltd company and we will provide software services for foreign clients and receive payment in USD to our current bank account.

Do we need to pay Service Tax ? As per following link, it is mentioned that we won;t need it.

http://www.binarytides.com/service-tax-for-indian-freelancers-and-software-firms/

Do we need to get IEC (Hdfc bank is asking to open an currency account)

Looking to get answers from experts.

Thanks
Neha

aadish

aadish (Expert)
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01 October 2012 As per place of provision rules 2012, place of provision shall be the location of receipient of service.( where the services provided consumption is taking place),so in your case u r exporting so u r out of the ambit of service tax. but there is a exception 1) service provided by banking company 2) online database rettrival services 3) intermediary services 4) services consisting of hiring of means of transport upto a period of 1 months - we will see location of service provider for above mentioned services.

and it is necesaary to take Import export code. bz u r dealing in exporting your services.

Hope your query is resolved.

Neha

Neha (Querist)
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15 December 2012 Hi Aadish,

Thanks a lot for your reply. Yes my query has been resolved.

Thanks
Neha

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aadish

aadish (Expert)
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18 December 2012 Pleasure Dear..