Rendering of service outside india

Guest (Querist) 23 April 2013 This query is : Resolved
Hello Respected Seniors and my fellow mates,
I have a question regarding rendering information technology service outside india.
A person is registered and furnishing return in India in Service Tax with the taxable service named “” Information Technology Software Service “”. Now he is rendering the service to an international client outside India and receiving the consideration value in dollars in his own bank account around 1 lakh rupees. As usually he is paying service tax on that amount. But do he need to comply with any other laws or need to get any other license as he is transacting and rendering service beyond borders i.e. internationally. ???

Please help.

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Raj Kumar Makkad (Expert) 24 April 2013
Such person is required to obtain license from Director General Foreign Trade who in turn require may other formalities. It shall be good if the official site of DGFT is gone through for this purpose.

sharad (Expert) 24 April 2013
I am not clear as to why he is charging Service tax as he is complying with all the 3 conditions to qualify as'Export of Services under 'Export of Service Rules', namely:
1. The service receiver should be outside India
2. The services should be used outside India; and
3. The remittances should be in foreign currency.

Please enlighten me if I am mistaken

The person should obtain import/ export code from DGFT's office, which is a simple process. This should be quoted on invoices.

Guest (Querist) 24 April 2013
Please note that i am not selling any product or exporting/importing any product. I am just rendering a software service. For that also do i need to get the IE code from dgft ?

Kanagasabai (Expert) 24 April 2013
As per the Foreign Trade Policy the below category of persons needs to be applied for IEC.
i. Merchant Exporter
ii. Manufacturer Exporter
iii. Service Provider
iv. Others (please specify)
v. Merchant cum Manufacturer

And accordingly you need to get IEC from DGFT.

Guest (Expert) 24 April 2013
It seems, you are just trying to waste time of experts without presenting the real picture, as the query seems to be your classroom exercise as a law student.

The question arises, as a law student, how it has become possible for you to conduct a business of rendering a software service in a foreign country?

Why you are not coming forward with facts and keeping the experts in a guessing position?

H.M.Patnaik (Expert) 24 April 2013
Pl. come up with the real problem .

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