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Export of service

Nisha (Job) (140 Points)

07 October 2013

Case: Service provider in India, Service receiver in USA, Service provided is software service and Consideration would be service provider would be receiving dollar. Whether service tax would be charged on such service? Reply asap...

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7 Replies

(Guest)

Yes....and service provider had to pay service tax in this case

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Anurag Maheshwari (partner) (21 Points)
Replied 07 October 2013

No, because service tax is a destination based tax. It will be levied on assessee if services are received in India.

Nisha (Job) (140 Points)
Replied 08 October 2013

Anurag, Services will be received outside India.so what you think

Nisha (Job) (140 Points)
Replied 08 October 2013

Ankitj tell the logic behind your conclusion

Anandsagar (Accountant) (40 Points)
Replied 08 October 2013

No, Service tax will not be applicable, if services provided out of India.

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CA Pallav Singhania (IT System Auditor) (33672 Points)
Replied 08 October 2013

As per Rule 6A of Service Tax Rules, 1994, provision of any service provided or agreed to be provided shall be termed as Export of Service if following conditions are satisfied:-

1. The provider of taxable service is located in taxable territory.

2. the recipient of service is located outside India.

3. the service is not a service specified in the negative list [Section 66D].

4. the place of provision of the service is outside india.

5. the payment for such service has been received by the provider of service in convertible foreign exchange.

As per my view, In your case all the above conditions are satisfied. Hence, it will be covered under export of service and you are not liable to pay service tax.