Hello,
My client is an exporter of services (fulfill all conditions of export of services). I have couple of questions regarding that as below:
1. Do the client need to take service tax registration mandatorily in case his export receipt from services exceeds 10 Lakhs?
2. In case he have 2 lakhs of domestic service receipt and receipt from export of services are more than 10 Lakhs, will there be any service tax applicable?
3. If Yes, is there any penalty for not registering and non-payment of service tax till date.
Looking forward to your expert comments.
Thanks
Service Tax Registration Not Required for Export Services; Applies Only if Domestic Receipts Exceed Threshold. An individual inquires about service tax registration for a client who exports services, questioning if registration is mandatory when export receipts exceed 10 lakhs and whether service tax applies if domestic receipts are 2 lakhs. A respondent clarifies that exports are not subject to service tax, so registration is not necessary unless claiming a refund for inward service tax. Despite receiving advice to register, the respondent reiterates that registration is only needed if the threshold is crossed for domestic services, not exports, as they are outside the tax purview. (AI Summary)
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