Service tax on company in america

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2013 Hi,
We have a company in America and we have a proprietorship in india as well. We are providing remote services ( IT services)in india to our USA company clients. We are paying the employees in india for that services to USA clients.
My question is do we need to raise the invoice against our company in America for the services (remote services) we are rendering to their clients in USA from india.
will it attract service tax also ?
Is there any other option available rather than raising an invoice to get the money back in India for the services rendered to american client?

Thanks in Advance.

Kaushik Vinod

Kaushik Vinod (Expert)
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13 February 2013 Simple Reimbursement of expenses is not covered in ambit of Service tax.
Rather then Invoice you sud issue debit note and collect the amount as reimbursement from that Company.

The money can be recovered by way of debit note.

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2013 Thanks for the reply.

But the debit note is for what?
For Remote Services Rendered.

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Kaushik Vinod

Kaushik Vinod (Expert)
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14 February 2013 Yes for the reimbursement of the expenses

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2013 But isn't it that service tax is exempt on foreign services.