Service tax leviable or not?

This query is : Open

KUNAL BAJAJ (Querist)
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01 December 2015 My Company in India provides manpower service to a company located in Singapore. Manpower sits in India and work for Singapore Company. Salaries and other expenses are paid by Indian Company. Indian Company Charges Fee for such service from Singapore Company. e.g Invoice Amount (10.80 Lacs)= Salaries (10 Lacs) + 8% on 10 Lacs(Services Charges) Directors are Common in both entities. My Query is : Whether Service Tax Leviable or It is exempt as per Rule 3, POPS, 2012 or it is export?

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Ashish Chaudhary

Ashish Chaudhary (Expert)
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02 December 2015 Yes, the services would be export of service under Rule 3 of POPS as the contractual obligation to receive the services and payment of consideration is on the foreign company. The location of employee is not relevant.

KUNAL BAJAJ

KUNAL BAJAJ (Querist)
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02 December 2015 but sir, what if directors are common in both companies, Rule 6A would be N.A?

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KUNAL BAJAJ

KUNAL BAJAJ (Querist)
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02 December 2015 but sir, what if directors are common in both companies, Rule 6A would be N.A?