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Export of service tax in incorporation of a comapany

Girish Kapoor (Accountant & MBA student) (50 Points)

16 February 2010

Hi,

If I receive a order from foriegn company to incorporate a subsidiary of new company in India. I incorporate such company in India and receive payment in foriegn currency? Will these service be treated as export of services or taxable under service tax ?

Thanks & Regards

Girish Kapoor

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2 Replies

Gautam Joshi (Partner) (361 Points)
Replied 17 February 2010

Hi Girish,

Give me few inputs to solve the above issue:

Which of the following service/services we (service provider company) have provided :

1. Financial services (provided financial help to incorporate subsidiary)

2. Legal & professional services (like how to incorporate company in India from all legal perspectives)

3. Management Services (few directors/any staff acted in capacity of managers/in-charges)

4. Infrastructure and Manpower Services (Establishment of building, staff recruitment and etc.)

5. All of the above

We can classify the service only when we get the above inputs. After classification we need to see under Export of Services Rules under which category the same classified service is falling. Once we knoe the category we have to fulfill criterias given to call it export of services.

Warm Regards.