Dear experts,
We propose to provide IT ( software )related trouble shooting services from India to our other affiliate company located across the globe, for which we will be recovering some fees by raising invoices for the services provided to them from India. The affiliate will place the service request from outside India whenever required. We will receive the fees in convertible foreign exchange.
Are we require to pay service tax on the same in India? if yes in which service category?
IT Troubleshooting Services to Foreign Affiliate Considered Export; No Service Tax Applies Under Place of Provision Rules. An individual inquired about the applicability of service tax on IT troubleshooting services provided from India to an affiliate company abroad, with fees received in convertible foreign exchange. A respondent clarified that since the software is hosted on a server outside India and services are provided electronically, the Place of Provision (POP) is considered outside India. Therefore, no service tax is applicable as the services qualify as exports. (AI Summary)
TaxTMI 
TaxTMI 
