Export of service, Service Tax

[MANOHAR KALBURGI]

Dear sir,

1. Indian based Pvt Ltd company gives manpower supply to Singapore based company (Indian company is associate of Singapore company), manpower supply is at par i.e no margin is added on such employee cost which recovered from Singapore based company.

2. does this tantamount export of service ? and No ST triggers.

3. If not whether we are eligible to claim exemption under mega exemption provided by ST.

3. Suppose if Indian company is not an associate entity of Singapore company, what are the tax implications?

Thanks in Advance

Posts / Replies

[KASTURI SETHI]

SH.MANOHAR KALBURGI JI,

Query-wise reply is as under:-

Q.No.2 : It does not qualify as export of service in terms of Rule 6 A (1) (f) of Service Tax Rules,1994

Q.No.3 : No exemption is admissible under mega exemption notification no. 25/12-ST dated 20.6.12 as amended from time to time. Manpower supply does not find place in this notification.

Q.No. 4: If Indian Co. is not an associate company, then it will qualify as export of service subject to fulfillment of other conditions laid in Rule 6A of Service Tax Rules, 1994 .

Also see the definition of 'associate company' under the Company Act, 2013.

[MANOHAR KALBURGI]

Dear sir,

Thanks for your valuable opinion. It is much appreciated!

[KASTURI SETHI]

SH. MANOHAR KALBURGI JI,

I am all praise for your etiquette (nay virtue) of expressing gratitude.

Regards,

K.L.SETHI