CA in service & CS. dipmaj@
3489 Points
Joined June 2011
Prima facie this is export of service. Export of service is a non taxable service. Rule 6A of Service Tax Rules 2012 mention the conditions when a service fall within the ambit of export. If export no need to charge service tax. But registration is needed if aggregate turnover is > 10 lakhs in a year. This will also help to claim refund of service tax paid on input services used to provide output services.
The only hitch here is there may be a thought that export proceeds are not directly coming to your bank account in india through convertible foreign exchange due to Paypal.
Thanks,