RajeshShah (Others) (33 Points)
09 June 2016We are an IT company and we pay an annual fee to company situated outside India called Salesforce.com. This is paid in USD and it is for partner program membership i.e. once we pay the fees, we are their registered partner.
Is service tax applicable for this payment? if yes, how much should the service tax be paid if the amount paid in INR (after conversion) is Rs 40000?
karan jit singh
(Consultant)
(1299 Points)
Replied 10 June 2016
| Originally posted by : RajeshShah | ||
 |
We are an IT company and we pay an annual fee to company situated outside India called Salesforce.com. This is paid in USD and it is for partner program membership i.e. once we pay the fees, we are their registered partner. Is service tax applicable for this payment? if yes, how much should the service tax be paid if the amount paid in INR (after conversion) is Rs 40000? |
 |
would you more elaborate regarding this annual fee ? what are the benefits ? are you reprenting them ?? Partner program?
RajeshShah
(Others)
(33 Points)
Replied 10 June 2016
Membership to partner program has various benefits:
karan jit singh
(Consultant)
(1299 Points)
Replied 10 June 2016
| Originally posted by : RajeshShah | ||
|
Membership to partner program has various benefits: Helps customers of the software (Salesforce.com) to approach us for business since we are registered partner. We can earn commission from the customer if they purchase the software via us. |
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okay
Now I understood. No service Tax is chargeable since POPS fall outside the Taxable territory
Regards
Karanjit Singh
+91-7503588224
shreyansh
(C.A.)
(105 Points)
Replied 10 June 2016
Dear Mr. Chirag,
Please review the below mentioned Link.
/articles/applicability-procedure-of-service-tax-under-reverse-charge-21184.asp
List of Services under Reverse Charge : Point No. 9
karan jit singh
(Consultant)
(1299 Points)
Replied 10 June 2016
| Originally posted by : shreyansh | ||
|
Dear Mr. Chirag, Please review the below mentioned Link. /articles/applicability-procedure-of-service-tax-under-reverse-charge-21184.asp List of Services under Reverse Charge : Point No. 9 |
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Hi shreyansh.
This would be applicable only if POPS falls under taxable territory. please refer POPS rules, 2012
Regards Karanjit Singh +91-7503588224
Read also /forum/krishi-kalyan-cess-pending-payments-361722.asp
RajeshShah
(Others)
(33 Points)
Replied 10 June 2016
| Originally posted by : shreyansh | ||
|
Dear Mr. Chirag, Please review the below mentioned Link. /articles/applicability-procedure-of-service-tax-under-reverse-charge-21184.asp List of Services under Reverse Charge : Point No. 9 |
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Thank you Shreyansh. Under point 9, it mentions, Taxable services. Why would this payment be a taxable service?
karan jit singh
(Consultant)
(1299 Points)
Replied 10 June 2016
| Originally posted by : shreyansh | ||
|
Its Import of Service | |
Sorry shreyansh, I can understand your feelings. But Act and rules are much beyond the emotions.
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