madhavvan (service) (154 Points)
30 June 2011A foreign company based in germany has given labour contract for work
to be performed in India to an Indian company, Indian company executes
the work in India
foreign company pays for invoice in foreign currency.
whether Indian company has to charge service tax or this will be
exempted from service tax and be construed as export of service as per
export of service rules.
readers enlighten
valji
(Accounts manager-MBA)
(2150 Points)
Replied 30 June 2011
export service are exempt from tax so it is not required to charge service tax (export service rules 2005
| The provision of any taxable service specified in sub-rule (1) shall be treated as export of service when the following conditions are satisfied, namely:- | |||
| (a) | such service is provided from India and used outside India; and | ||
| (b) |
payment for such service [x x x] 3 is received by the service provider in convertible foreign exchange. Export without payment of service tax.- Any service, which is taxable under clause (105) of section 65 of the Act, may be exported without payment of service tax.
5. Rebate of service tax.- Where any taxable service is exported, the Central Government may, by notification, grant rebate of service tax paid on such taxable service or service tax or duty paid on input services or inputs, as the case may be, used in providing such taxable service and the rebate shall be subject to such conditions or limitations, if any, and fulfillment of such procedure, as may be specified in the notification.1 |
||
Pankaj Arora
(Job)
(150 Points)
Replied 30 June 2011
Service tax is destination based tax so if services are rendered in India that means services are not exported.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 30 June 2011
I AM AGREE WITH PANKAJ SERVICE PROVICE FROM INDIA BUT ALSO USE OUTSIDE INDIA
SINCE HERE SERVICE NOT USE OUTSIDE INDIA THEN EXEMPTION ARE NOT AVLIABLE
| (a) | such service is provided from India and used outside India; and |
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 30 June 2011
Dear Madhavaan, with your query I am not clear how can a labor contract services which are provided in India can be used outside India. Please provide some more details about the transactions.
CAclubindia
