If a service provider in India is providing taxable services(under the head Business Auxiliary Services) to a party in US and receiving the payment in US Dollars, is this taxable or exempt? And under which Rule/Section?
yashsr (CA) (2285 Points)
18 June 2012If a service provider in India is providing taxable services(under the head Business Auxiliary Services) to a party in US and receiving the payment in US Dollars, is this taxable or exempt? And under which Rule/Section?
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 18 June 2012
I think it is exempted service because it falls under Point 2 of Export of Service Rules. Performance is outside India, it is an export and money is received in convertible foreign curreny. So, i think it is exempted.
yashsr
(CA)
(2285 Points)
Replied 18 June 2012
Thanks although would still wait for a confirm reply since there have been many changes in Service Tax in the recent Budget..
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 18 June 2012
It will be exempted service as per Rule 3(1) and 4 of Export of Services Rules 2005. But it will be outside the levy net only if the proceeds are received in India through banking channels within 1 year from date of export as provided under Rule 7 of POT rules 2011. Otherwise not.
Regards,
yashsr
(CA)
(2285 Points)
Replied 19 June 2012
| Originally posted by : Dipjyoti Majumdar | ||
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It will be exempted service as per Rule 3(1) and 4 of Export of Services Rules 2005. But it will be outside the levy net only if the proceeds are received in India through banking channels within 1 year from date of export as provided under Rule 7 of POT rules 2011. Otherwise not. Regards, |
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Was the situation the same before the Budget this year or has something changed?
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