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
18 Jun 2016 
3 Replies 
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Guest 
Export of service exemption may exclude overseas receipts from registration threshold but place of provision rules govern taxability.
Services supplied to overseas clients may qualify as export of service and be exempt from service tax if invoices are addressed to non resident clients and payment is received in foreign exchange; such exempt export turnover is excluded from the registration threshold so registration need not be triggered by that turnover. Proper documentation should be maintained for audit, while an alternative view notes that taxability ultimately depends on the Place of Provision of Service Rules determining where the service is supplied. (AI Summary)
Services supplied to overseas clients may qualify as export of service and be exempt from service tax if invoices are addressed to non resident clients and payment is received in foreign exchange; such exempt export turnover is excluded from the registration threshold so registration need not be triggered by that turnover. Proper documentation should be maintained for audit, while an alternative view notes that taxability ultimately depends on the Place of Provision of Service Rules determining where the service is supplied. (AI Summary)