varun (Senior) (55 Points)
22 May 2009please help me out for the foll query:
A company in US has a 100% subsiday in India which provides support services on behalf of its parent company.
The parent company is into SAP imlementation. All the clients are in the US.
1.I want to know if service tax is applicable in India
2.whether this service falls under export of services.
an early reply to my problm will be highly appreciated.
Satish
(CA Final Student)
(479 Points)
Replied 23 May 2009
Required some other details - 1. to whom it is billing 2. When & how it receives the consideration
varun
(Senior)
(55 Points)
Replied 23 May 2009
| Originally posted by :satish mundada | ||
| " | Required some other details - 1. to whom it is billing 2. When & how it receives the consideration | " |
ans to Q.1: the entire billing is to the parent company
ans to Q.2: it depeds on the work order and the remittences are transferred direclt thru bank.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 24 May 2009
The services provided by you could be under either management consultacny or ITSS ( I feel the latter is preferable)
These services are considered as exports if: recepient outside India, used outside India and amount recived in convertible foreign exchange.
It appears that all the critereon are met therefore ti should be an export of services.
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