Taxation of services received out of india

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Sanjeev Agarwal (Querist)

07 March 2016 The assessee is a refiner located in India and is engaged into manufacturing of Gold Bars. For this he has to import Gold Dore from out of India. He needs to pay purchase commission to intermediaries located out of India for helping procurement of Gold Dore. Does assessee need to pay service tax on such purchase commission paid by him out of India?

Guest

Guest (Expert)

07 March 2016 No service tax is not payable in this case because the place of provision for intermediate service is deemed to be considered the place where the intermediary (i.e service provider) is located, as per Rule 9 of Place of Provision of services rules 2012. Hence this is considered as a service provided in a non taxable territory and not chargeable to Service Tax

Sanjeev Agarwal

Sanjeev Agarwal (Querist)

07 March 2016 Does Intermediary services definition also includes supply of goods?

Guest

Guest (Expert)

07 March 2016 Yes intermediary definition includes supply of goods also. this amendment to the definition was brought in from 1/10/2014 onwards

Sanjeev Agarwal

Sanjeev Agarwal (Querist)

09 March 2016 Thanks a Lot for your valuable inputs.

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