Applicability of service tax - export of service
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 July 2016
I request the learned and experienced to please clarify on the following:
An Indian Company (registered under Central Excise & Service Tax and having its office only in India) markets for the sale of products of a Foreign Company since April 2013.
The Foreign Company directly receives orders from the end customers in India.
This foreign Co. has no establishment / offices in India.
The Foreign Co. supplies the instruments to their end customer and requests the Indian Company to complete the installation and commissioning of their instruments (exported by the foreign Co. to India) at their end customers site in India. The foreign Co. pays the Indian Company in convertible foreign exchange for the Technical Services / Business Auxiliary Services.
Please clarify the following with corresponding rules and case laws, if any:
a. Can this be classified as Export of Service and hence Service Tax is not applicable.
b. If we are we Liable to pay Service Tax, can we claim credit of the same?
Regards,
Harish
An Indian Company (registered under Central Excise & Service Tax and having its office only in India) markets for the sale of products of a Foreign Company since April 2013.
The Foreign Company directly receives orders from the end customers in India.
This foreign Co. has no establishment / offices in India.
The Foreign Co. supplies the instruments to their end customer and requests the Indian Company to complete the installation and commissioning of their instruments (exported by the foreign Co. to India) at their end customers site in India. The foreign Co. pays the Indian Company in convertible foreign exchange for the Technical Services / Business Auxiliary Services.
Please clarify the following with corresponding rules and case laws, if any:
a. Can this be classified as Export of Service and hence Service Tax is not applicable.
b. If we are we Liable to pay Service Tax, can we claim credit of the same?
Regards,
Harish
26 July 2016
Hi,
Service tax would be applicable as the place criteria is not satisfied, to classify the same as export place of goods should be outside India.
Incase you are paying Service tax you can adjust against input services and if any balance after utilization of can be paid by cash.
Service tax would be applicable as the place criteria is not satisfied, to classify the same as export place of goods should be outside India.
Incase you are paying Service tax you can adjust against input services and if any balance after utilization of can be paid by cash.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- FORM 26A APPLICABILITY
- Value of property in capital gain
- Regarding TDS Applicability For Director Remuneration
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Transporter Declaration form
- E-Invoice applicability for new Startup
- Filing of MSME 1 form by companies
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
