21 August 2015
Dear All, I am facing some challenging situation in my office and need your expert opinion. We are a BPO of our parent company in UK in the business of providing temporary contractors to various clients. Now one of the client having head office in UK and a PE in India asked our UK office for a consultant to be posted in India. Our UK office found a PIO with US citizenship suitable for the position and hired him as a consultant under contract. The consultant is providing services in India and stayed in India more than 180 days in the f.y. 2014-15.Our UK office is billing the client every month in GBP and the client is paying from their UK office for the service provided in India by the consultant. We are paying the consultant for his services and expenditures in INR after deducting TDS and remitting the TDS to department, and our parent company is reimbursing the same to us every month. My question is that whether anyone is liable for service tax at all, if yes who would it be?