Export of service

[MANOHAR KALBURGI]

Dear sir,

1. Indian based Pvt Ltd company gives manpower supply to Singapore based company (Indian company is associate of Singapore company), manpower supply is at par i.e no margin is added on such employee cost which recovered from Singapore based company.

2. does this tantamount export of service ? and No ST triggers.

3. If not whether we are eligible to claim exemption under mega exemption provided by ST.

3. Suppose if Indian company is not an associate entity of Singapore company, what are the tax implications?

Thanks in Advance

AI Summary

Manpower Supply to Associate Company Abroad Not Export of Service Under Rule 6A(1)(f); Service Tax Applies An Indian private limited company supplies manpower to a Singapore-based company, its associate, without adding a margin to the employee cost recovered. The query seeks to determine if this constitutes an export of service and if service tax is applicable. The response clarifies that it does not qualify as an export of service under Rule 6A(1)(f) of the Service Tax Rules, 1994, and no exemption is available under the mega exemption notification. However, if the Indian company is not an associate of the Singapore company, it may qualify as an export of service, subject to other conditions.