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Issue ID: 110027
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Service Tax Query on Exporting Services

Date 12 Mar 2016
Replies3 Replies
Views 1396 Views
Asked by
Place of provision determines export of services-foreign payment and actual service location decide export treatment.
Export treatment requires the service provider to be in taxable territory, the service recipient to be outside India, and the place of provision of service to be outside India; payment must be in convertible foreign exchange although rupee receipts routed through a foreign bank may qualify, and services on the negative list are outside the charge. Whether administrative assistance is exported depends on factual determination of where the service is provided, and rupee receipts do not automatically negate export status though the taxable portion must be identified. (AI Summary)

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?

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