Dear All, This is my fist post to this group and I hope I will get a response from my fellow members. Following are the fact of the case.
(1) A person is currently an employee of the public company.
(2) That person wants to now act as an consultant to the same company. Under this new role, he is not going to raise any periodic invoices but he is going to get remuneration/fees as specified in a contract for a given tenor (also given in contract). Total contract amount will be greater than 10lakhs p.a.
(3) Apart from this he also earns income in USD from overseas clients which is eligible for exemption under export of service rules. This USD revenue is also more than 10 lakhs p.a.
Questions:
(1) Does his proposed contractual consultancy attract service tax?
(2) Will his proposed contractual consultancy also extend service tax on USD income which is currently exempted?
Any comments/views are highly appreciated.
Thanks in Advance :)
CAclubindia
