Exemption of service tax

[Guest]

Dear Sir, We wish to start designing garments which is covered under 'Fashion Designing' we would be making patterns , concetulise designs and sending them to customers outside India. Payment will be received in Convertiable Foreign Currency. No part of desigining will be performed outside India. Now my query is whether we will get Exemption of Service Tax? Please advice. Regards

AI Summary

Business Designing Garments for Export in India Denied Service Tax Exemption Under Export of Service Rules, 2005. A business inquiring about service tax exemption for designing garments intended for export received two responses. The business plans to conceptualize and design garments in India, with payment in convertible foreign currency, and asked if this qualifies for a service tax exemption. The first response clarified that under the Export of Service Rules, 2005, services must be performed outside India, either partly or fully, to qualify as exports and be exempt. The second response confirmed that, under current law, the service must be partly performed outside India to qualify for the export exemption, which is not the case here.