Export of services

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

Modus operandi of our business

We are providing services to various customers located in US as staff recruitment services. And the billing is made only from US office to our customers. And the company having branch office located in India and reimbursed all expenses made in India with some profit from our US office against the invoice raised by Indian branch to US office. And we get all the payment only foreign convertible currency.

My query is

1.whether are we Exporter of service?

2. If yes do we have to execute the bond or LUT as the case may be?

3. Do we get the refund against the inputs used in the business in India?

4. So far we have shown as export of service under service tax regime.

5. So far we have not made transfer pricing. Is there any consequences under income tax act?

Please kindly elaborate me sir.

Thanks in advance.

AI Summary

Export of services classification hinges on distinct person status; intra group India to foreign office supplies may attract IGST.
Whether services by an Indian establishment to a foreign office qualify as export of services depends on five statutory conditions including that supplier and recipient are not merely establishments of a distinct person. Services from an Indian office to the same company's foreign office are generally not export of services but a taxable interstate supply liable to IGST, with valuation under GST Valuation Rules and attention to transfer pricing consequences.