I have small Outsourcing Business, I provide/assist clients with Administrative projects, all my clients are outside India. The payments are transferred in my Current account, 75% in USD and around 25% is transferred in INR. My revenue is gonna be more than 10 Lac.
My query is am I exempt from Service tax as I am exporting my services? And I don't need to do anything on Service Tax part?
Service Tax Query on Exporting Services
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Outsourcing Business Seeks Service Tax Exemption: Review Rule 6A, 1994 & Provision Rules, 2012 for Export Criteria An individual with an outsourcing business, providing administrative services to clients outside India, asked if they are exempt from service tax given their revenue exceeds 10 lakh INR, with payments in both USD and INR. Respondents highlighted that service tax exemption for exported services depends on several factors, including the location of service provision and payment in convertible foreign exchange. They advised reviewing Rule 6A of the Service Tax Rules, 1994, and the Place of Provision of Services Rules, 2012, to determine tax obligations. The 25% payment in INR may not disqualify the service as an export if other conditions are met. (AI Summary)
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