Service tax on foreign payment to a service provider.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 June 2010
Dear All,
Our company has imported some finished goods of automobiles parts from China.
We have appointed a person in china, He will visit different factoreis of automobile manufacturer and provides us the details of products that they made and selling price etc . The such person provide us a bill summary in which he charges from us regading his serives and reimbursement of his fooding, hotel accomdation, conveyance etc. Total amount is to be pay 850USD.
Now we have to pay service tax on it under reverse charge scheme of service tax.
Unit of our company is registered under service tax for paying service tax on transport services. Which service we have to add in our registration certificate for paying such paymnet outside india.
Our company has imported some finished goods of automobiles parts from China.
We have appointed a person in china, He will visit different factoreis of automobile manufacturer and provides us the details of products that they made and selling price etc . The such person provide us a bill summary in which he charges from us regading his serives and reimbursement of his fooding, hotel accomdation, conveyance etc. Total amount is to be pay 850USD.
Now we have to pay service tax on it under reverse charge scheme of service tax.
Unit of our company is registered under service tax for paying service tax on transport services. Which service we have to add in our registration certificate for paying such paymnet outside india.
15 June 2010
Based on the facts as it is stated that it amount to import of services and accordingly you are liable to pay service tax under reverse charge scheme. Your company is registered as specified person receiver of Goods Transport Agency service. You have to register as service receiver with specific service as received and accordingly your company will be liable to pay service tax and if the above service is used as an input service for the manufacture of excisable goods or for the provision of output service, then the tax paid on import of services will form part of the CENVAT
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