What is the different category of service tax in India?

Service tax exemption based on "export of services" rule in India?

I am an India based software developer working as an independent contractor for a company located in US. I am not a salaried person but a self-employed person (working from home in India). The US company pays me in USD in my account in an American bank. I transfer that money to my account in an Indian bank. My question is am I supposed to pay service tax (in India) on my income? As per my understanding, I will be exempt as my work will be classified as "export of services" based on following criteria: - Service recipient is a US company (i.e. located outside India) - I get paid in convertible foreign exchange - Though they have an office in India, order of provision of service is issued from an office outside India. I wanted to confirm my understanding that I need NOT pay any service tax in India. Thanks.
Answer:

You dont have to pay service tax but claiming the exemption under Export of Service Rules you have to first get registered under Service Tax.

mandar at Yahoo! Answers Visit the source

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Other answers

Yes, you are right. You need not pay service tax. However, you have to file returns showing the income generated and exported under exempted service. Thanks

Deepak S Bijur

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