Service tax - consultancy for textile manufacturing

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2013 Dear Sir,

We have started an agency who is acting as buying agency for US based importer and we get commission for the same. This service is expempted as per service tax norms.

Sometime we also have to do consultancy in terms of development of fabrics such yarn dying, texture, feel etc. for the final prodcuts. In this regard, i have following query:
1) Is this service is taxable or not, If yes, on what rate?
2) If not, then is service tax registration is required or not?
3) If not, then do I have to declare this to service tax department to get expemption?

Please advise.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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13 February 2013 depend upon the uses of services under the place of provision of services rules 2012. Uses of services is outside India and received the payment in foreign currency then service tax will be exempt.

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2013 Thanks for reply. But consultancy is provided to exporter for product development and payment is made in INR.

Does this service quality to Textile Processing which is an exempted under service tax norms?

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Querist : Anonymous

Querist : Anonymous (Querist)