Dear Sir / Madam,
We are a Civil Engineering Services Provider. We are providing Engineering Design & Detailing for Indian companies. We are following all service tax rules for the same.
Recently we have got the chance to provide similar services to a US Based client. The client is in USA, his works is also in USA, we raise invoices to USA and get paid in Dollars. Is service tax applicable on this income? What i am hearing from few people is that once you are in service tax net irrespective of whether the money is coming from India or abroad , service tax has to paid. But when i read across different forums it is clear that work done for companies outside India and remuneration received from outside India is exempt from service tax.
Hence is it possible for a company to have both type of clients? And also is it possible that the company pays service tax for all its earnings from India and for all foreign earnings it does not pay service tax.
If there is any relevant section which confirms this , then please give me that also.
Thanks
Hilmesh Gandhi
We are a Civil Engineering Services Provider. We are providing Engineering Design & Detailing for Indian companies. We are following all service tax rules for the same.
Recently we have got the chance to provide similar services to a US Based client. The client is in USA, his works is also in USA, we raise invoices to USA and get paid in Dollars. Is service tax applicable on this income? What i am hearing from few people is that once you are in service tax net irrespective of whether the money is coming from India or abroad , service tax has to paid. But when i read across different forums it is clear that work done for companies outside India and remuneration received from outside India is exempt from service tax.
Hence is it possible for a company to have both type of clients? And also is it possible that the company pays service tax for all its earnings from India and for all foreign earnings it does not pay service tax.
If there is any relevant section which confirms this , then please give me that also.
Thanks
Hilmesh Gandhi