Is web designing, seo services exempted under st

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One of my client is providing SEO, online marketing, web designing outside india. He always raise invoice in $ and received payment through paypal mediator. Whether he is required to get register under service tax and whether he shall apply service tax in his bill..??whether he is liable to pay service tax??

Replies (2)

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,

Sir you created a doubt again that whether it is a taxable service or not if payment is received thru paypal.please make it clear.


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