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export of service, filling of tax

xien (db) (135 Points)

10 May 2009

Hello,

I am professional, doing software and IT services for a US clients (who have no establishment in India at all). I receive the payment in US dollars. This is the only source of income for me. Hence I believe I fall under export of service and hence I dont have to pay or deduct any service tax.

My question are these two-

1. Is my understanding correct that I dont have to worry about deducting or paying any service tax.

2. Since my service tax is nill, do I have to still file for Nill returns?

Thanks and regards,

xien

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4 Replies

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 11 May 2009

The important aspect is that you are doing IT services which fall under recepient based services and you recive the monies in Convertible Foreign Currency + the services are used outside India. You have no liability to pay the service tax on export of services as per the Rules of 2005.

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xien (db) (135 Points)
Replied 11 May 2009

Madhukar,

Thanks a lot for information. It answers my first question. Thanks a lot.

Also can you tell me that if this is the only source of my income and no other source then do I have to fill for nill returns of service tax? or filling only income tax is enough?

Thanks,

xien