Reverse charge on non-taxable territory
This query is : Resolved
CA Prashant Gupta
(Querist)
14 March 2014
In Service tax under Reverse Charge machinism it is said
" in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory"
my query is " as per service tax non-taxable territory means J&K and other than Indian territory. so in this section is there any exemption because if not, then all services will be taxable from foreign countries. or we should pay service tax on all services from foreign countries?"
" in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory"
my query is " as per service tax non-taxable territory means J&K and other than Indian territory. so in this section is there any exemption because if not, then all services will be taxable from foreign countries. or we should pay service tax on all services from foreign countries?"
15 March 2014
1. Reverse charge is applicable when a person situated in a taxable territory (India excluding J&K) RECEIVES services fro a person situated in a non-taxable territory (Other countries AND J&K).
2. This means that the person RECEIVING the service has to pay service tax on the services received.
3. There is NO exemption in this case. Services received from ALL countries is taxable.
2. This means that the person RECEIVING the service has to pay service tax on the services received.
3. There is NO exemption in this case. Services received from ALL countries is taxable.
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