We are Indian resident registered under Business Auxilary service and rendered service in abroad (in Chaina) for our Indian customer (Located in Taxable territory). Also raised invoices in India in INR.
Can we charged service tax to our customers towards service rendered in outside India .??? Please reply with sections in act?
22 May 2015
No service tax payable for Service rendered outside taxable territory. The Charging Section (section 66 B) of the Finance Act as amended in 2012 specifies that"there shall be levied a tax (hereinafter referred to as the ST) at the rate of twelve per cent on the value of all services,other than those services specified in the negative list,provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed.”
Shipping Lines are charging service tax on destination terminal handling charges i.e such a service rendered in outside India. This services are provided to an India Customer.
So as we are registered under Business Auxilary services, should we charges the services tax on destination terminal handling charges.
CAclubindia
