Export of services rules

Export of services were exempted before but noe they have become non-taxable services.

Dear Mr Prateek

Did not undersatnd your reply.First it was exempted and now non taxable?whats the diff?Both means service tax not payable?

We are agents for few overseas co and sell their products in India to direct importers.We are paid commission by overseas co in usd.Are we under service tax now?

Sanjay

Yes sir, they both mean that you dont have to pay service tax on export of services. Condition is that the consideration must be received in convertible foreign exchange which you are getting.

Hence, you are outside the purview of service tax.

Mr.Prateek Agarwal, Plz help me..  My problem is similar to Mr. Sanjay Shah.. Its a UK based company, Iam giving them some consultancy services.  Dey r paying in GBP bt I shall receive in  INR via My local Bank with the help of London based Routing Bank.

Am I Liable for Service Tax??

If they are paying you in Indian Rupees, then the condition is not met. Hence, I think you are attracting service tax.

The condition is to receive foreign currency, not INR.

Sir I have modified the question now.. So now also am I liable for service tax??

Dear Sir,

The mode of payment received is foreign currency. What I am construing is that you are converting the same into INR and then crediting it to your bank. If thats the case, then you are not liable to tax.

Yes Sir.. Thank you for helping me out. n Iam gal nt boy.. :)

Ooopsss...my bad :-) Sorry...

Cheers!!