Service TAX or Income TAX

Hi,

I am working as consultant for a company of japan . The company is not registered with RBI. I am confused that i have to pay the service tax as well as the Income Tax or only the service tax.

Please Suggest.

Thanks

asked Mar 18 '12 at 23:10 by maddy 1122


Services provided outside India are exempt of service tax.

To claim the exemption under service tax two points are important, 1. That services will be rendered outside India and 2. Collection should be in foreign currency.

If you want to read the full rule

http://www.servicetax.gov.in/exp-service-rule.htm

Relevant portion

2[(2) The provision of any taxable service specified in sub-rule (1) shall be treated as export of service when the following conditions are satisfied, namely:-
(a)     such service is provided from India and used outside India; and
(b)     payment for such service [x x x] 3 is received by the service provider in convertible foreign exchange.

4. Export without payment of service tax.- Any service, which is taxable under clause (105) of section 65 of the Act, may be exported without payment of service tax.

answered Mar 20 '12 at 17:56 by Mithun Dhali 302

link

Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text](http://url.com/ "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported

Tags:

×778
×10
×8
×1

Asked: Mar 18 '12 at 23:10

Seen: 1,937 times

Last updated: Mar 21 '12 at 21:00