Service Tax applicable if Salary paid by US Company in Rupees?

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  1. st210039

    st210039 New Member

    Hello,

    I am working for a US client from India. The US client is planning thru pay my salary thru another middle company. The middle company is located in USA and India. I will be paid in Indian currency.

    If I work for the the middle company as a professional contractor, Should I have to pay Service tax in India?
     
  2. Karan Batra

    Karan Batra Well-Known Member

    For the service to be exempted from the levy of service tax, the amount should be received in convertible foreign currency.

    In your case, as you are receiving the amount in indian currency, i doubt if this would be considered as export of service.
     
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