Please, Help me to know that how to tax on import of service for example ., Mr. B is a service provider having office in India (i.e., within taxable territory) provide service to Mr. A who also reside in India. Mr. B also utilize the service of Mr. C who reside abroad (i.e., out of the taxable territory ) to accomplish the service which was agreed between Mr B and Mr. A. So what is tax liability in the hands of all party i.e., in case of: a). Mr. A b). Mr. B c). Mr. C
Assuming - service provided is taxable service - non of the party fall under SSI category - Period is FY 2015-16 - Mr. B is not an agent of Mr. C, he act as independent professional practitioner
10 March 2017
There is no liability in the hands of Mr. A and Mr. C. Mr. B has to bear service tax liability in following manner: -
- Service provided to Mr.A -> Normally - Services received from Mr. C -> Mr. B has to pay service tax under reverse charge on amount of service taken from C as import of service is covered under reverse charge i.e. service receiver has to bear the tax liability
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