Service tax liability on foreign payment

Monika (CWA FINAL) (121 Points)

11 January 2011  

Hello,

An indian company needs to pay for royalty to a US company and has to bear all incidental taxes .My query is

1. does indian co needs to pay for service tax (it does not have a Service tax number yet)?

2.If it has to pay for service tax , how it can avail the credit for the same ?

thanks