23 June 2013
Company A is engaged in exporting services of software design and is not registered for Service Tax as the prescribed limit for service tax is not crossed. Company A outsources the work to Company B but Company B is registered under Service Tax and hence is imposing service tax on company A at the time of presenting an Invoice. Can Company A avail refund for this service tax ? OR Is there any alternate solution to avoid service tax ? Also, please note that Company A is only dealing with exports and has no local sales to avail credit.
25 June 2013
Once Company A gets registered with Service Tax, can it get refund for the work outsourced from Company B ? As, company A is purely an exporter and hence cannot pass on the service tax to the final user ?