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

Export of services: qualification depends on foreign currency payment and recipient location; absent that, service tax may apply.
Qualification as export of services depends on the location of the service recipient and receipt of payment in foreign currency; if payment is in foreign currency and the effective recipient is outside India, the transaction is export and not subject to service tax, but if the recipient is a domestic entity or payment is not in foreign currency, service tax may apply.