SERVICE TAX ON CALL CENTER

[AMIT JAIN, Advocate]

Dear sir, please guide me regarding service tax on call center. my client is running a call center and receive payment from out side india. in this case what is the procedure to charge service tax .

AMIT JAIN, Adv.

AI Summary

Clarification on Service Tax: Call Centers Serving Foreign Clients Qualify as Export of Service, Exempt from Tax. An advocate sought guidance on service tax implications for a call center client receiving payments from outside India. The response clarified that if the call center provides services to clients abroad, receives payment in foreign currency, and the central data server is located outside India, it qualifies as an export of service, exempt from service tax. However, if the call center contracts with an office in India and receives payment domestically, the tax situation becomes debatable. The criteria do not apply to 100% Export Oriented Units (EOUs) in India.