Assessee received export payments for the taxable services through paypal. My question is -will service tax exempt on payments received Paypal ?Will export of service tax rules 2005 apply in this case ?Will service tax deptt accept this payment as export of service ?
Following updates available :-
Bangalore CESTAT in the cases of Muthoot Finance & Nipuna Agencies held that it is Export of Service, and hence exempt. Recently, in Sept.2011, Delhi CESTAT gave a "Difference of Opinion" order, where one member held that it was EOS and another held that it was Business Auxilliary Service, and therefore taxable. Matter now awaits appointment of 3rd member. Misc. Order No.ST/166/2011 Bhatia Money Changer+Paul Merchants - Agents of Western Union Money Transfer.
My question is that what is the outcome of the above judgement. Also after point of taxation rules is the Paypal sales taxable or exempt ?
Rajesh Poddar
CAclubindia
