SERVICE TAX ON SERVICE PROVIDED OUTSIDE INDIA

This query is : Resolved

Gaurav Kumar (Querist)
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12 July 2009 Dear Sir/Madam,
If a foreign co. advertise, our indian co., outside India.
Whether our co. is liable to deduct TDS on its paymant.

plz.. tell me about its service tax liablity consequences.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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14 July 2009 The service tax is liable on reverse charge basis on payments made under Section 66A.Import of services.

After payment of the same you would be eligible to avail as credit if your products are excisable or service taxable.

Rakesh Jain

Rakesh Jain (Expert)
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31 December 2009 Service Tax is applicable only if any service is provided in India other than J&K. therefore Service Tax is not applicable .
Concept of Import of Services is applicable only in any indian company received services from outside India in India.
In your case Indian company is receiving services outside india so concept of import of services is not applicable.