Applicability of Service tax for foreign software developing companies , Service Tax

[Priyanka Mehta]

My client is hiring software engineers and getting the work done for foreign software dev. companies & receiving payments in convertible foreign exchange. Whether this attracts service tax?

Posts / Replies

[Surender Gupta]

Your query is salient on the following issues (1) whether he is acting as a commission agent or (2) he is undertaking main work and part of the work is assigned to other software engineers or (3) he is the supplier of the software to his foreign clients which has been developed by an independed software engineer appointed by him.