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Is service tax payable on it services provided outside india

Vinay Kesharwani (Director WMLab) (23 Points)

08 December 2016

Hello,

I provide freelance services to foreing clients & deliver softwares to them. They usually pay me via Paypal.com and amount is credit to my bank account within 7 working days.

Also, I sell my software in Envato marketplace. Say I sold $100 in a month, they charge some fee (say $10) & then credit $90 at the end of the month via Skrill.com to my account. It again takes 7 working day for clearing. For details I am attaching an Invoice.

Is service tax payable on this service? I have tried to contact so many CA's & got the both type of answers.

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2 Replies

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 08 December 2016

Can you please explain the nature of service more precisely.

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Vinay Kesharwani (Director WMLab) (23 Points)
Replied 08 December 2016

The services offered by me is purely digital in nature. Its like writing software code for them & then delivering the output to clients all across the world.

In second scenario, my software/scripttts are listed on Envato Digital Marketplace (Just like Amazon Marketplace) and customers all across the world can buy and pay the charge to Envato, at the end of the Month, Envato send money via Paypal.com after deducting its commision. An invoice is attached in the main thread for reference.