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Service tax on outsource work from us ?

CA Abhishek Singh (practice) (2106 Points)

17 May 2015

Hello everyone,

One of our client is a LLP registered in India and are providing Legal drafting service to US based company. Drafting work is done from office in India and data is sent through EMAIL and payment is received in USD.

My Question :

1. Since services are provided in India i am of view that it is not export of service and therefore taxable in India. Am i correct ?

waiting for the views of the experts.

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1 Replies

CA Saravanakumar (Practice) (59 Points)
Replied 21 May 2015

Dear Mr Abishek It shall be treated as export of service in my opinion. The instant case s covered by Rule 3 of POPS rules. Location of service receiver s in US a non taxable territory. Hence this is not taxable. However to qualify this service as export of service you have to satisfy the conditions given in Rule 6A of Service tax rules.