export of web site development service to Netherlands (Holland) is being done. Pls tell the procedure to be followed so the the service is exempt under export service.Invoice can be raised in INR and payment is received in bank from overseas buyer.
export of web site deveopment service
satbir singhwahi
Understanding Service Tax Exemption for Exported Web Development Services Under Rule 6A(1) and RBI Guidelines An individual inquired about the procedure for exempting website development services exported to the Netherlands from service tax. A respondent explained that according to Rule 6A(1) of the Service Tax Rules, 1994, services are considered exports if certain conditions are met, including payment in convertible foreign exchange. Another respondent added that, per RBI guidelines, invoices can be issued in INR if the foreign client pays in foreign currency through a VOSTRO account. Both responses aimed to clarify the conditions under which the service could be classified as an export and thus exempt from service tax. (AI Summary)