transfer of funds from maldives, service tax

[anil samantaray]

a partner ship firm providing consultancy services(in ERP) in india wants to open a branch at maldives.. The issues are

what are the regulations to be followed for transfer of funds from maldives?

whether export of consultancy service is taxable in india?

what are the guidelines to be followed?

please help...

regards

anil samantaray

orissa

india

[Surender Gupta]

Export of services shall not be taxable where the conditions prescribed under the export of services rules, 2005 are fullfilled.

Regarding opening of branch office outside India, there is no specific provisions however for various activities, there may be different provisions that may be attracted. You may visit these regularations for more details.

AI Summary

Export of services may be exempt from service tax when prescribed export of services rules are satisfied. Transfer of funds from Maldives to India must comply with FEMA, RBI directions and procedural requirements for inward remittances; opening a foreign branch has no single provision and regulatory consequences depend on the activities abroad. Export of consultancy services is not taxable for service tax if the conditions prescribed under the Export of Services Rules, 2005 are satisfied, so the firm must verify and meet those conditions to claim the exemption.