service tax on income from abroad
This query is : Resolved
08 March 2009
I am a software developer who takes freelance work from foreign clients and get paid in dollars. Do i need to charge any service tax or VAT on the bills i give to my clients abroad ?
Also do i need any export license ?
Regards
Sidharth
Also do i need any export license ?
Regards
Sidharth
08 March 2009
29 March 2009
-
05 April 2009
If the service is rendered outside India, and consumed outside India, then it shall be treated as export of services under the following provisions.
Export of Services Rules 2005 & Taxation of Services (Provided from Outside India & Received in India) Rules 2006
Conditions:
1.Rule3(i)- In relation to an immovable property situated outside India (For export)
2.Rule3(ii)-Partly performed outside India( for exports)
3.Rule3(iii)-In relation to Business or Commerce &Recipient located outside India; in any other case recipient shoule be outside india at the time of receipt of service ( for exports)
In relation to Business or Commerce& Recipient located in India ( For Imports)
4.For exports- provided from india and used outside India & payment is received in convertible foreign exchange by the service provider
If you fulfill all the conditions then it falls under Exports, no need to pay service tax
The above clarification is NOT provided as a legal opinion but is derived from the text of the Act.
Export of Services Rules 2005 & Taxation of Services (Provided from Outside India & Received in India) Rules 2006
Conditions:
1.Rule3(i)- In relation to an immovable property situated outside India (For export)
2.Rule3(ii)-Partly performed outside India( for exports)
3.Rule3(iii)-In relation to Business or Commerce &Recipient located outside India; in any other case recipient shoule be outside india at the time of receipt of service ( for exports)
In relation to Business or Commerce& Recipient located in India ( For Imports)
4.For exports- provided from india and used outside India & payment is received in convertible foreign exchange by the service provider
If you fulfill all the conditions then it falls under Exports, no need to pay service tax
The above clarification is NOT provided as a legal opinion but is derived from the text of the Act.
29 August 2009
29 August 2009
29 August 2009
Thanks a lot for replying.
Just one thing, should i get an IEC code for the same ? Although currently my earnings aren't above $25000 (as mentioned in notification No. FEMA 23/2000-RB )
thanks again
sidharth
Just one thing, should i get an IEC code for the same ? Although currently my earnings aren't above $25000 (as mentioned in notification No. FEMA 23/2000-RB )
thanks again
sidharth
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