services of consultant to us based company

[Abhishek Panicker]

Let me make it clear. I am not a Tax practitioner. Considering that I used to work long ago in the Indirect Tax domain, I was asked a service tax query. I thought I could use this platform to assist the queryist. The individual got an offer of being appointed as a Marketing Consultant to a US based company. They would pay him in USD every month and the foreign company does not have any office in India. Is this Consultant required to pay service tax? My opinion is that since the service recipient is in a non-taxable territory and the consulting fees are received by the provider in USD there cannot be any liability of ST. Informed netizens on this forum may advise me. I found this link also useful http://www.business-standard.com/article/sme/service-tax-not-payable-if-recipient-of-service-is-located-abroad-115030901142_1.html

Thanks in advance.

AI Summary

No Service Tax on Exported Services Paid in Foreign Currency Under Rule 6A, Service Tax Rules 1994. An individual in India received an offer to work as a Marketing Consultant for a US-based company, receiving payment in USD. The query concerns whether the individual must pay service tax. Multiple responses clarify that since the service recipient is abroad and the payment is in foreign currency, it qualifies as an export of service under Rule 6A of the Service Tax Rules, 1994. Therefore, no service tax is payable. The individual is not required to register with the service tax department unless seeking a refund of input tax, in which case registration and filing a nil return are necessary.