Service tax on foreign service received

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This query is : Resolved

Narendra Shah (Querist)

12 June 2014 designing & developing of our Mold Equipment in USA by our abroad Consultant and we taken service. The said services shown as our asset in our account books.
Kindly advise & suggest have to pay service Tax in India by us? are we right this service shown as asset?
Thanks with regards,
Narendra Shah

Sudeep

Sudeep (Expert)

12 June 2014 Here we need to determine whether service was provided by the USA consultant on the Mold equipment when it was in USA or when it came to India?

In case USA consultant provide services on the Mold equipment when it was in the USA then you must have already paid Customs on the same so service tax should not apply.

We need to go into granular detail in order to provide a black or white answer to your query.

Also from accounting perspective, you can capitalize this service as part of fixed asset.

Sudeep +91 96191 61183.

Narendra Shah

Narendra Shah (Querist)

16 June 2014 Sir Thanks for Solution. we have not paid Customs Duty, So, we have to pay Service Tax, However following Queries in my mind. Pl. suggest
1]In which S.T.Head we have to pay S.T. amount?
2] It will require to add Service in our S.T.Registration Certificate as a Receptionist of said Service?
3]Pl. inform from which date the said Service was eligible taxable. also inform Notification /Circular No. & Date.
Thanks with regards,
Narendra Shah

Arun Kumar Singh

Arun Kumar Singh (Expert)

17 June 2014 If services has been provided in abroad and you have received the money in foreign convertible currency then no need to pay service tax.

Narendra Shah

Narendra Shah (Querist)

17 June 2014 Sir, It is not proper suggestion of my Queries. we have received Service from abroad, we have paid Money not received.
Pl. suggest reg. my Queries.
Thanks,
Narendra Shah