Applicability of service tax

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This query is : Resolved

G Sankara Narayanan (Querist)

16 May 2016 We are in a JV with an Australian Company. The Australian Company recently bid for a project of a State Governement funded Development Corporation and was awarded the Contract. We will be executing the project on behalf of the Australian Company. The Corporation will be making the payments directly to the Australian Co. who in turn will remunerate us. Just want to be clarified on whether service tax is payable for this service provided in India? If we are executing 40 % of the project and remaining 60% is provided by our Australian partner, what would be the service tax implications? Thanking you in advance.......G Sankaranarayanan

Rupesh Jain

Rupesh Jain (Expert)

16 May 2016 service tax chargeable due to service in provided in india, and follow the indian laws, also JV partner income will also taxable in india.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 May 2016 What is the nature of the project.
Service tax payable if the work does not fall under negative list or exempted list.
You have to pay applicable service tax on 40% of the project. Australian company has to pay applicable service tax on 100% value of the project and claim cenvat credit on 40% value of project executed by you.

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