service tax claim on export of services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2010 our comapny has done export of services in the following ways
1) service done in india (programing) but beneficiary is in abroad
2) our employees gone to abroad and provided the services

please clarify the service tax implication..whether any exempt is availale .if payable can we set off aganist the credit or should be payable as cash/cheque (actual payment)PLA payment

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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14 July 2010 There are 2 parts
(a) Programming done in Inda will attract service tax provisions but you can claim exemption under the provisions of export of services provided the amounts are realised in foreign exchange.

(b) For employees gone aborad and provided services there since service is provided outside India and receiver is outside India the same is exempted under service tax.

If in case a if it is payable because you are receiving amount in Indian currency then you can adjust against any amounts available for set off.