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People posted outside India

Neeraj Gautam (Cheif Manager - Finance & Accounts) (32 Points)

21 May 2009

My company appointed an employee on contract and posted him out side india for 2 years, We need to raise the invoice to our sister concer outside india in USD. IS this invoice is liable to charge service tax?

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5 Replies

Arun Kumar Singh (GST Advocate) (15206 Points)
Replied 21 May 2009

you can raise the service tax but depend upon the services.

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Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 22 May 2009

There is no liability as the service is performed and received outside India.

Satish (CA Final Student) (479 Points)
Replied 23 May 2009

Is your company is a Manpower recruitment Agency ?. If yes, who is your client ? it the Indian Company or a Foreign Company ? Please elaborate in detailed

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 24 May 2009

There is no need in my view to examine the tyep of service as long as the service is provided and recived outside India. It would be subjected to the laws of that location and India would not have territorial jurisidction.

Neeraj Gautam (Cheif Manager - Finance & Accounts) (32 Points)
Replied 26 May 2009

Thanks Madhukar, I am also of the opinion that services performed and received outside India is not liable to charge service tax. Doubt which created in my mind because engineer professional appointed in India and by an Indian firm. Secondly, One more query is there that whether to deduct TDS from the claim amount by the professional.