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Service tax applicability

CA.K.C.MAHATO (FINANCE CONTROLLER,) (60 Points)

13 June 2016

Dear Sir,

I Have a query regarding Applicability of Service Tax on Following Case :

"A Ltd" is a Foreign Company not having any Establishment in india,who deals in Machinery Manufacturing in Outside India. A Ltd. Sold machinery to B Ltd in india. A Ltd Foreign Company having Agreement With C Ltd (indian Company) for Warranty Period Technical Support Service for Machinery which is located in India. Therefore A Ltd making payment in USD $ to C Ltd.

Here , Question is, Whether C Ltd is Liable for Service Tax under Warranty Period tecnical Support Service ?

Which Section Applicable ?

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2 Replies

urvi gandhi (Study) (45 Points)
Replied 13 June 2016

Hello sir,
As per rule -5 of place of provision of service rules,2012 the machinary is located in india so pop is india hence tax will be levied.

1 Like

karan jit singh (Consultant) (1299 Points)
Replied 13 June 2016

Originally posted by : CA.K.C.MAHATO
	Dear Sir, I Have a query regarding Applicability of Service Tax on Following Case : "A Ltd" is a Foreign Company not having any Establishment in india,who deals in Machinery Manufacturing in Outside India. A Ltd. Sold machinery to B Ltd in india. A Ltd Foreign Company having Agreement With C Ltd (indian Company) for Warranty Period Technical Support Service for Machinery which is located in India. Therefore A Ltd making payment in USD $ to C Ltd. Here , Question is, Whether C Ltd is Liable for Service Tax under Warranty Period tecnical Support Service ? Which Section Applicable ?