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Service Tax on Immigration Services

Purushothama J (CA Student - Final) (71 Points)

29 August 2007

Hai All,

Whether service tax is liable for immagration services:

Services: Procurement of visa, certification from home ministry.

Billing: Billed to the agent outside india. Agent procures order from Companys(IBM,INTEL) on behalf their employees(indians)

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7 Replies

Ritesh (Accountant) (692 Points)
Replied 29 August 2007

Pls clear ur ? Again

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Ritesh (Accountant) (692 Points)
Replied 29 August 2007

Then i Can help u

Yash Arya (Profession) (128 Points)
Replied 29 August 2007

Is this your main business or it is a part of other main business? Service tax is not applicable if the immigration service is being provided as a stand alone service. Further, even if the immigration service is covered under any service category, you are providing service to foreign clients like IBM, Intel, hence these would most probably be covered under export of service Rules, on which no service tax is applicable.

Purushothama J (CA Student - Final) (71 Points)
Replied 30 August 2007

Thank You, But one more query. The billing is not done to IBM,INTEL. But it is billed to Agent(like us) outside india, who has got the order and we are executing the job in india. all the billing is done in USD and received in USD.

Purushothama J (CA Student - Final) (71 Points)
Replied 30 August 2007

Service: Immigration Servcices. Procurement of visa or extension of visa Billing: to Agent outside inida, in usd Background: 'A'(indian) employee of IBM in USA has to extend is visa, where employers himself on behalf of employee takes responsibility. IBM gives the work to the agent(USA). Inturn Agent(USA) passes the order to indian agent for procuring the order. The same is biled in USD to the agent(USA)

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Yash Arya (Profession) (128 Points)
Replied 30 August 2007

This will not change the nature of service being exported. To qualify any service to be exported of service require that the services are received by person situated outside India and the consideration is recieved in Foreign Exchange. One more condition to be verified is where the services performed. There are categories on which different rulings have been given in Export of Service Rules, which need to be checked once the category is determined in which your services fall. Regards Yash Arya