Service Tax in invoice for foreign clients?
I know that service tax is not chargeable on billing of foreign clients. Can we issue bills without showing service tax or do we have to show service tax in bill and later get the refund of same?
My clients are located outside India and i provide some marketing services to them. All payments are received in foreign currency.
I provide marketing services (Online marketing including SEO) and software related services and this include even coding.
First of all, Service tax chargeability has to be based on a combined reading of many rules and one of them is the Place of Provision of Services Rules. Please consult Rule 3, Rule 4 , Rule 5 & Rule 9 for your SERVICE and determine the place of provision.
Your question is not very clear as to what is the service provided, whether it is based on performance or based on immovable property or
whether those that are included in Rule 9 which enlists four services namely
1. Services provided by a banking company/NBFC/FI to its accountholders
2. Online Information & DB access/retrival services
3. INTERMEDIARY SERVICES
4. Services of Hiring MEANS OF TRANSPORT upto ONE MONTH
Services i provide are related to softwares. I provide SEO services and also sometime software development services.
All services are provided to foreign clients but staff works in India.
Marketing services are generally classified as BUSINESS AUXILAY SERVICES. However, we have to carefully apply Rule 9 which says Intermediary services. If the Indian company providing the marketing services is an INTERMEDIARY of the foreign company and NOT AN INDEPENDENT SERVICE PROVIDER, then Service tax liability is on Service provider providing marketing services and recieving Foreign currency.
“intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the ‘main' service) between two or more persons, but does not include a person who provides the main service on his account;”
My doubts is whether service tax should be charged or not. Since its export of services whether service tax is payable?
Your question is not very clear for me. Are you providing MARKETING SERVICES ( as per your Main post) or SOFTWARE related services ( as per your reply) ?
SEO is kind of marketing services but i also provide software related services. As far as i know, service tax is not chargeable on export of services, correct me if i am wrong.