we are traders in india, but we test our product from outside india and receive a bill from foreign party (as testing charges) sir, my query is that is service tax applicable on that testing charges, if yes pls explain
03 May 2015
Service tax not applicable being service rendered outside the taxable territory.
The place of provision of following services shall be the location where the services are actually performed, namely:-
(a) services provided in respect of goods that are required to be made physically available by the recipient of service to the provider of service, or to a person acting on behalf of the provider of service, in order to provide the service.