Levy of service tax on placing software engineers in US & other countries on work permits

[Guest]

My client is placing software engineers in US & other contries on work permits provided by the companies there. Is service tax leviable on him or he is exempt under export of service rules.

[Surender Gupta]

If your client placing software engineers in US and other contries to execute work assigned to it, it shall not be liable to service tax, but, it is an activity in the nature of manpower recruitment services, than it shall be taxable accordingly. Further, your client may avail the benefit of export of services and avail the exemption as per the conditions prescribed.

AI Summary

Export of services: placing software engineers abroad may be exempt from service tax if export criteria are met. Placement of software engineers abroad may qualify as an export of services and be exempt from service tax if it meets prescribed conditions; however, if the activity is characterized as manpower recruitment services it is taxable and not eligible for the export exemption.