Reverse charge mechenism
This query is : Resolved
Neha Kothari
(Querist)
04 October 2016
Dear Expert,
Please advise, if service provider is a foreign company, service recipient is an Indian company and place of service is Outside India.
Please advise whether ST is chargeable under reverse charge mechanism for Indian company?
Please advise, if service provider is a foreign company, service recipient is an Indian company and place of service is Outside India.
Please advise whether ST is chargeable under reverse charge mechanism for Indian company?
Message likes :
1 times
CA R SEETHARAMAN
(Expert)
04 October 2016
Tell me the nature of service. No reverse charge applicable in case of exibition services, hotel and intermediary services provided out side India to an Indian company.
Message likes :
1 times
Neha Kothari
(Querist)
04 October 2016
Sir,
We have bought 2nd hand machinery from Switzerland. The services are related to dismantling the machinery there. We have given contract to a Netherlands company
We have bought 2nd hand machinery from Switzerland. The services are related to dismantling the machinery there. We have given contract to a Netherlands company
CA R SEETHARAMAN
(Expert)
04 October 2016
This service is rendered outside the taxable territory so no reverse charge applicable.
Message likes :
1 times
Neha Kothari
(Querist)
04 October 2016
Thank You so much Sir. Could you also advise on TDS portion. Do we need to deduct TDS while paying to Netherlands company?
CA R SEETHARAMAN
(Expert)
04 October 2016
No need of TDS as service is rendered by non resident outside India.
Message likes :
1 times
Saket Agarwal
(Expert)
05 October 2016
Looks like the place of provision of service is outside India. Since service tax is a destination based tax, there will be no levy of service tax on services provided outside the taxable territory.
Neha Kothari
(Querist)
05 October 2016
Dear Sir,
Just for my own knowledge, if the contract with Netherlands company include services of:
1. dismentling the machinery in Switzerland and
2. reassembling the machinery in India in the original form as was in Switzerland,
then would ST and tds be applicable?
Just for my own knowledge, if the contract with Netherlands company include services of:
1. dismentling the machinery in Switzerland and
2. reassembling the machinery in India in the original form as was in Switzerland,
then would ST and tds be applicable?
CA R SEETHARAMAN
(Expert)
05 October 2016
TDS and ST will be applicable on reassembling the machinery in India.
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
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Capital gains in IT returns
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Advances to related party
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- 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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
