Service Tax Registration

[Ajoy Singh]

Regarding Service Tax registration

Hello Sir,
I have two queries regarding the following matter...

1 ) service exported in outside india in terms of Website Designe & Developement is taxable or non-txable in the hands of service providers ?

2 ) If , the above service is Taxable in the hand of Service Provider and the turnover in financial year is crossed 10 lakh. Then Registration for the abive case is mandatory or NO?T

Ajoy Singh

Accountant

[KASTURI SETHI]

Exempted irrespective of the quantum (amount) of turnover in a financial year. Proof of export docs and receipt of foreign exchange must be kept in record. You must also go through reply dated 20.6.16 of Sh.Krishan Barai, an expert against Issue ID no.110519 dated 14.6.16 in 'Discussion Forum' regarding the procedure, if required.

[YAGAY and SUN]

Dear Ajoy,

Please check Declared service and Place of Provision of Services Rules in this regard.

Regards,

YAGAY and SUN

[CSSANJAY MALHOTRA]

Website Design and Website development is altogether different service. POPS rules needs to be looked at considering your service and place of execution. In case reverse charge is applicable, Service tax registration is mandatory and in another case Registration is required if the turnover during F.Y. exceeds ₹ 9 Lacs.

[Ganeshan Kalyani]

Sir, i agree with the experts. The location of service provided need to be seen. If taxable service is provided out of taxable territory then service tax provision is not applicable. Thus no service tax. Thanks.

AI Summary

Export of services: exempt if supplied outside taxable territory with foreign exchange receipts; registration depends on reverse charge or turnover.
Export of services such as website design/development depends on the Place of Provision of Services rules: supplies made outside the taxable territory and received in foreign exchange qualify as export of services and are not subject to service tax, provided export documentation and foreign exchange receipts are retained. Registration is mandatory if reverse charge applies, or if the provider's turnover in the financial year exceeds the statutory threshold; advisers recommended confirming the exact turnover limit and procedural requirements.