Applicability of Service tax

[Rohit Bathwal]

Hi,

I have two queries as under:

1) We are a company in India and is providing software development and integration service to a client in UK. We will be billing the client on man hour basis for the service provided in USD and/ Or GBP Kindly guide if service tax is applicable for this transaction.

2) The same company is providing sales services to a client in UK, i.e. we are selling the products of the UK based companies online in UK. The product is owned by the client in UK and we just provide the online sales services. We shall be receiving commission on the sales as a percentage of sales. Kindly guide if Service tax is applicable in this transaction.

Kindly provide your valuable comments on above.

AI Summary

Indian Company Seeks Clarity on Service Tax for Export Services to UK Client Under Rule 6A A company in India is seeking advice on the applicability of service tax for two scenarios involving services provided to a UK client. The first scenario involves software development billed in USD or GBP, and the second involves online sales services for UK products, earning commission as a percentage of sales. Respondents agree that these transactions are treated as export services and are not subject to service tax. One respondent notes the need to confirm if commissions are received in convertible foreign exchange. The company also inquires about the necessity of obtaining a service tax registration number for export services.