Hi,

I'm running a small design firmware which provides electronics engineering related design services. We render services only to foreign customers and do not have any sales in India.

a) So I wanted to know if we are liable to pay any service tax ?

b) Should be obtain service tax registration (our export turnover is >10lacs per annum).

c) If the service tax is exempted, how can we prove that the service has been indeed exported (what are the standard supporting documents we should provide)?

At present, we do not have any paperwork and all business transactions (quotations, payment requests etc) are done through email.

Yes your firm is entitled to charge service tax on the export bill  since the export is  a kind of scientific & technical consultance services.

follow this link: http://www.servicetax.gov.in/st-actmainpg.htm

2. You should obtain service tax registration number since you would be charging it to the importer and as a result the service tax collected needs to be deposited duly with the government, and at the same time you can avail credit against the service tax paid by you.

3. Since the service tax is not exempted as per the service tax rule, you need not require any supporting document to prove it. 

What about service tax exemption for export of services rules:

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

Could you please elaborate on your question?

Hi,

You said, we need to pay service task on the export of services and take service tax registration.

In the following link: http://www.servicetax.gov.in/exp-service-rule.htm it is clear that service tax is not applicable on export of services. Hence there is no liability on us to pay service tax & since there is no liability, there is no need to take registration. Is that correct?

Hi

Service tax is applicable on  export of taxable services.However as per clause 4 with reference to the above link it is said '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.' So please check out, if your services is covered under clause 105 of section 65, it's only then you may be exempted.

On export of service the service provider is not liable to pay service tax.

It is exempt.

caprabhakargupta@rediffmail.com

If you getting money in forign currency, the service provided by you would be exempt, otherwise service provider would be liable to pay service tax.

No service tax is not applicable in this case. Clear cut explanation can be obtained from question 13 series at the following link:

http://www.servicetax.gov.in/faq-29sept11.pdf