Applicability of service tax on branch of indian company

Nikhilendra Patel (Student CA Final ) (36 Points)

13 November 2015  

If Indian Company A is placing a work order on the Branch (Situated and registered outside India) of another Indian Company B for the services in the country of branch, then whether service tax is applicable or not ? Services / work will be performed outside India. Branch is legally registered outside India and under applicable taxability of that country. There is no service tax applicable in the country where branch is registered. Please suggest.