Suppose a Company A(in India) is been hired by another company say B (in Germany) for rendering some engineering service on behalf of them to company C (in India). Company A is going to Invoice Company B and the money is going to be received in a convertible foreign exchange.
Query
1) who is the service recipient under the new rule of service tax from Company A angle 2) Whether the transaction between Company A and Company B would construed to be an Export of Services under the new rule of Export of service rules 2012, 3) Whether the Place of Provision (Rule 4) would be applicable, thereby denying the benefit of export and require to pay service tax.
1.Practically Company A will bill to B hence service recipient is Company B.
Here Rule 4 can attract if the Services are related to goods, and which require such goods to be made available to the service provider or a person acting on behalf of the service provider so that the service can be rendered, are covered. Rule 4 is attracting in my view also agree with you.
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