Export Of Service Rules

[Dhirendra Srivastava]

I had a query If a Japanese Company recieves a contract of Overhauling of machinery from Indian Company( Say A ) and the the Japanese Company outsource that contract to the another Indian Company ( say B ). My query is that when the Indian Company ( B ) will raise the invoice to Japanese Company, Will it be treated as Export of Service and accordingly whether we need to charge the service tax.

AI Summary

Is Company B's Invoice to Japan an Export of Service? Opinions Differ on Service Tax Applicability. A Japanese company contracts with an Indian company (A) for machinery overhauling and outsources the task to another Indian company (B). The query is whether Company B's invoice to the Japanese company qualifies as an Export of Service and if service tax should be applied. Two respondents, Mangesh Lokre and Rishi Mohan, state that if Company B receives payment in foreign currency, it is considered an export, exempting it from service tax. However, Taranjeet Singh argues that since the service recipient is in India, service tax should be charged, as it is a destination-based consumption tax.