Section 66A of the Finance Act 1994 (Service Tax)

This query is : Resolved

Vijendra

( Author )
14 September 2010

Dear Sirs/Madams,

As i ask you all expert personalties in the indirect field, i am confused a bit.

As per Section 66A, a person receiving service from a foreign establsihment deemed to be the service provider.

Hence the liability of paying the service tax is on the person receving such service.

But my question is whether provisions of Finance Act 1994 will be applicable in a service which is provided outside india. As Section 64 says that the Act is applicable to whole of India except the state of Jammu and Kashmir.

Can you throgh some light on this issue.

Advance Thanks
Vijendra Ray

Manish wadhwa

( Expert )
15 September 2010

import of service is governed by taxation of services recieved from outside india rules 2006.
since the person (read service provider) located outside India does not have an office in India the person receiving the service has to pay the service tax,however he is entitled to the service tax credit of the same. finance act 1994 is applicable as the service is received in India.