Import of Services
This query is : Resolved
18 December 2010
Please Explain the Term " place of business" used in Section 66A(1)(effective from 18-4-2006) in respect of Import of Service.
A ltd. is a company of USA. B ltd, of Japan povide services to A ltd. which are belongs to A company for working in USA. One person is working in india on behalf of A ltd. B ltd. raised bill on A ltd. with USA address. On that bill in discription B ltd. mention the Indian address of A ltd.
Is this is consider as import of services?
Is this indian address is consider as place of business in india?
A ltd. is a company of USA. B ltd, of Japan povide services to A ltd. which are belongs to A company for working in USA. One person is working in india on behalf of A ltd. B ltd. raised bill on A ltd. with USA address. On that bill in discription B ltd. mention the Indian address of A ltd.
Is this is consider as import of services?
Is this indian address is consider as place of business in india?
18 December 2010
Dear Ganisht Ji,
If I am right M/s A Ltd having palce of business in India CONSIDERED AS SERVICES RENDERED IN INDIA AS EXPORT OF SERVICES TO A LTD.
Meaning of Export of taxable service - Following conditions are common in respect of all taxable services - (a) The service should be provided from India and used outside India [rule 3(2)(a) of Export of Service Rules] and (b) Payment for such service is received by the service provider in convertible foreign exchange [rule 3(2)(b) of Export of Service Rules].
In addition, further conditions apply to different categories of services. Rule 3 of Export of Service Rules classifies the taxable services in four categories –
Immovable property should be situated abroad [rule 3(i)]
Service should be at least partly performed outside India [rule 3(ii)]
Service can be provided firm Indian but recipient should be located outside India and order should be received from outside India [rule 3(iii)]
Services which not be treated as ‘export of services’ under any situation.
WITH RESPECT TO YOUR QUERY ON SECTION 66A (1)provides that where any service specified in section 65(105) of Finance Act, is,— (a) provided or to be provided by a person who has established a business OR has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India
PERSON OF INDIA IS FULLY COVERED FOR PLACE OF SERVICES AS HIS COMPANY'S PALCE OF BUSINESS LOCATED IN INDIA.
If I am right M/s A Ltd having palce of business in India CONSIDERED AS SERVICES RENDERED IN INDIA AS EXPORT OF SERVICES TO A LTD.
Meaning of Export of taxable service - Following conditions are common in respect of all taxable services - (a) The service should be provided from India and used outside India [rule 3(2)(a) of Export of Service Rules] and (b) Payment for such service is received by the service provider in convertible foreign exchange [rule 3(2)(b) of Export of Service Rules].
In addition, further conditions apply to different categories of services. Rule 3 of Export of Service Rules classifies the taxable services in four categories –
Immovable property should be situated abroad [rule 3(i)]
Service should be at least partly performed outside India [rule 3(ii)]
Service can be provided firm Indian but recipient should be located outside India and order should be received from outside India [rule 3(iii)]
Services which not be treated as ‘export of services’ under any situation.
WITH RESPECT TO YOUR QUERY ON SECTION 66A (1)provides that where any service specified in section 65(105) of Finance Act, is,— (a) provided or to be provided by a person who has established a business OR has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India
PERSON OF INDIA IS FULLY COVERED FOR PLACE OF SERVICES AS HIS COMPANY'S PALCE OF BUSINESS LOCATED IN INDIA.
28 December 2010
Dear Sir,
This person is just provide administrative services in India. Moreover USA company not provide any services in India to A ltd.
Please guide me
This person is just provide administrative services in India. Moreover USA company not provide any services in India to A ltd.
Please guide me
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
- Fixe term employment
- Is any professional CA is here please reply
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Putting a heading on received mail
- Gift Received from nonblood relative
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Experts need help
- Section 50-fixed asset-->building ceases to exist
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
