Applicability of service tax on branch of indian company

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If Indian Company A is placing a work order on the Branch (Situated and registered outside India) of another Indian Company B for the services in the country of branch, then whether service tax is applicable or not ? Services / work will be performed outside India. Branch is legally registered outside India and under applicable taxability of that country. There is no service tax applicable in the country where branch is registered. Please suggest.  

Replies (3)

Please Suggest. If you have some related case laws then please share. My Question is : Whether service tax is applicable to the Indian companies branch registered in other country ? If work order is placed by an Indian company to that branch what will be the service tax treatment? Since Place of service is outside India, Consideration is also receivable outside India but on a Indian Companies branch.

Please suggest urgenly.

 

The levy of service tax is only for services provided in India. Where the service is provided and received outside India, it would not be liable to tax in India even if no ST is charged/ chargeable in that country.

Thank you sir, can you please give me related case laws reference. Also service rendered and received outside India but order is given by Indian company to another Indian companies branch situated outside india / place of service. Please suggest


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