Liability of Service Tax - Management Consultant

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... A is a Management Consultant based in India, rendering services to his overseas clients like market survey, sourcing Indian partners for JV's, market analysis, giving expert opinion about Indian industry etc. For this, he is getting payment in US$ into his bank account. Pls inform about his service tax liability in light of new regulations. Thanks !! - Reply By Surender Gupta - The Reply = From t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he query it appears that the service is taxable as Market Research Agency falling under the second category of export of service tax rules. I.e. if partly or wholly provided outside India. In your case, since service is wholly provided in India and than delivered to outside India, it shall be liable to tax despite the fact that payment is received in foreign exchange. - Reply By bitswit - The Repl .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... y = Thanks for your reply classifying the service as "Market Research". However, one further clarification is reqd. My understanding of Export of Goods Services Rules 2005 is that, in case of services like Market Research, in case such services are : a) Delivered outside India and used in business or other purpose outside India, and b) Payment for such service is recd in convertible forex; th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... en such services will be treated as Export and thus not liable to service tax. Further, in case the service is treated as Mgmt consultancy of Business Auxillary/ Business Support, even then the service will be treated as "Export" in case the above TWO conditions are fulfilled. Please confirm if my understanding on this issue is correct. - Reply By Surender Gupta - The Reply = Export of Service .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Rules, 2005 have been amended with effect from 19-4-2006 and accordingly, your understanding is correct. - Liability of Service Tax - Management Consultant - Query Started By: - bitswit Dated:- 24-4-2006 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmana .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... gementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X