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?
No Service Tax on IT Troubleshooting Abroad; Potential Export Benefits Under Rule 6A, Section 93A Finance Act 1994. An individual inquired about the obligation to pay service tax in India for IT troubleshooting services provided to an affiliate company located abroad, with fees received in convertible foreign exchange. An expert responded that there is no liability to pay service tax since the service provision is outside India according to Rule 3 of the Place of Provision of Services Rules. The service may qualify as an export if certain conditions under Rule 6A of the Service Tax Rules are met, potentially entitling the provider to a rebate on service tax paid on input services as per Section 93A of the Finance Act 1994. (AI Summary)
TaxTMI 
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TaxTMI 
