TaxTMI 
TaxTMI 
I have started web agency as sole proprietorship. We build websites and mobile apps for our clients. All our clients are form UK. And we have crossed the 10Lac turnover mark.
Can anyone please let me know is my service exempted from service tax, as all of my clients are from outside India. If we are exempted, do we still need to register for service tax for that exemption.
Any help would be highly appreciated.
Regards
Tousif
Service Tax Exemption
Tousif Ahmed
Sole proprietor seeks service tax exemption for UK clients; debate over Export of Service rules and Rule 10 implications. A sole proprietor running a web agency in India, serving UK clients, inquired about service tax exemption due to crossing a turnover of 10 lakh INR. Two responders confirmed that services provided to foreign clients are exempt under the Export of Service rules, and no registration is needed as the turnover is exempt from the threshold limit. However, another responder disagreed, suggesting the relevance of the Place of Provision of Service Rules, specifically Rule 10, to determine taxability, implying that if Rule 10 applies, the service might be taxable in India. (AI Summary)