akshay hinger (accountant) (51 Points)
17 March 2017What is applicability of TDs & service tax if service receiver is an Indian LLP receiving advertisement services outside India from service provider outside India who does not have an permeant establishment in India...
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174190 Points)
Replied 18 March 2017
TDS u/s. 195 would be applicable, but no service tax liability (under RCM) when services provided out of India.
CA V KARTHICK
(Chartered Accountant in Practice)
(506 Points)
Replied 20 March 2017
Since the Entire Service is received outside India the Income accrues outside India.
TDS under Section 195 will be applicable but the Benefit of Article 7 of DTAA with UK can be availed which requires deduction of TDS only if there is a Permanent Establishment in India.
Service Tax would be applicable as Place of Provision Rules which states that when the recepient of Service is in India Service tax has to be paid under reverse charges by the Service Recepient.
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
CAclubindia
