Services recieved outside India benefit derived in India

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This query is : Resolved

Vipin Kumar (Querist)

21 December 2010 Dear All,

Can any one tell me the provisions regarding any Services received outside India e.g. Yoga Methods, and the same methods are being adopted in India by a Fitness Company.

The foreign company is charging Royalty for use of such Yoga Methods adopted in India.

Will the Indian company be liable for Service Tax on reverse charge? as the ultimate benefit is derived in India.
And in which category it shall fall?

Please help. It's urgent.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

21 December 2010 Service tax is payable on royalty payment under the head" Health and Fitness services"

Rajesh Kumar

Rajesh Kumar (Expert)

24 December 2010 Although the Yoga Centre is required to pay service tax on Heathclub & Fitness centre service, the payment of service tax on royalty under reverse charge method should be paid in Intellectual Property Service.

Vipin Kumar

Vipin Kumar (Querist)

24 December 2010 Thanks a lot to both of you.

It is sure that service tax is payable,
please advice on the issue of tDS

Rajesh Kumar

Rajesh Kumar (Expert)

24 December 2010 TDS is deductible. Please check if the payment is being made to some person resident of a country with whom India have a Double Tax avoidance agreement.

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