Service tax payable or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2014 we submitted an invoice to our client at Sharjah, UAE address in INR currency, as the invoice was submitted outside India thus we did not charges service tax but the client has deducted the TDS @ 10% from our invoice value and payment from his office in INDIA.

MY QUERY IS WHETHER IT IS THE CASE OF EXPORT OF SERVICES AND TDS DEDUCTION IS CORRECT OR NOT

CA UMESH DULAL

CA UMESH DULAL (Expert)
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01 August 2014 Since you have received the payment in INR not in convertible foreign currency, your service will not fall within the meaning of export of service as conditions of rule 6A is not fulfilled.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2014 THANKU UMESH..DID U MEAN DIS IS TAXABLE ???

AND WAT ABOUT TDS DEDUCTION??

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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01 August 2014 Yes, it is taxable even if you have provided service in UAE as you received payment in INR.

It appears that you have provided the service to Indian Office of UAE. If so, they have rightly deducted the TDS.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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01 August 2014 Yes, it is taxable even if you have provided service in UAE as you received payment in INR.

It appears that you have provided the service to Indian Office of UAE company. If so, they have rightly deducted the TDS.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2014 what if place of rendering of service is outside the taxable territory??
but branch office and head office are two different establishments.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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04 August 2014 In your case, since you have received payment in INR, your service is not treated as export of service.