Applicability
This query is : Resolved
Moothedath
(Querist)
20 April 2013
An Indian CA firm is providing consultancy services to a foreign company to invest in a Joint Venture with an Indian company in India.
Whether Service Tax is applicable for this service provided by Indian CA??
Pls clarify
Whether Service Tax is applicable for this service provided by Indian CA??
Pls clarify
CA Sourabh Agarwal
(Expert)
20 April 2013
Tell me that Whether the company has established its place of business in India ?
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CA Sourabh Agarwal
(Expert)
20 April 2013
Tell me that Whether the company has established its place of business in India ?
CA Vipin Jain
(Expert)
20 April 2013
considering the foreign company do not have any establishment in India. If Indian company providing consultancy services to foreign company by mail or other internet/telephonic instruments then location of service is outside taxable territory (location of service receiver) hence exempt.
Pls. discuss with your consultant before relying on opinion above.
Pls. discuss with your consultant before relying on opinion above.
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Moothedath
(Querist)
22 April 2013
The company has not established a place of business in India, the foreign co. and Indian company is going to form a new Pvt. Ltd. Co.
CA Sourabh Agarwal
(Expert)
22 April 2013
Then certainly the service would be treated as export of services and treated as exempt if conditions under rule 6A of STR are complied.
(a) the provider of service is located in the taxable territory,
(b) the recipient of service is located outside India,
(c) the service is not a service specified in section 66D of the Act,(i.e. negative list)
(d) the place of provision of the service is outside India, (that's why i asked you business establishment)
(e) the payment for such service has been received by the provider of service in convertible foreign exchange, and
(f) the provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 2 of clause (44) of section 65B of the Act. (not relevant in your query)
(a) the provider of service is located in the taxable territory,
(b) the recipient of service is located outside India,
(c) the service is not a service specified in section 66D of the Act,(i.e. negative list)
(d) the place of provision of the service is outside India, (that's why i asked you business establishment)
(e) the payment for such service has been received by the provider of service in convertible foreign exchange, and
(f) the provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 2 of clause (44) of section 65B of the Act. (not relevant in your query)
Moothedath
(Querist)
22 April 2013
Thank u CA.Sourabh,where my doubt arises is the services are utilised outside india but to invest inside India; will it create any problem.???
Ultimately the service provided is helping them to make the decision to invest in India.
Pls clarify me
Ultimately the service provided is helping them to make the decision to invest in India.
Pls clarify me
CA Sourabh Agarwal
(Expert)
22 April 2013
That was also my concern. But taking plain interpretation of rules, there is no direct taxability as such.
Still if the case is big, it is advisable to go for written opinion of some reputed consultant.
Still if the case is big, it is advisable to go for written opinion of some reputed consultant.
Moothedath
(Querist)
23 April 2013
ok thank u Ji
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