Clarification on service tax on import of service

A new Company in India, not registered under Central Excise & Service Tax (Commercial activities not yet started) has been availing services for a foreigner.  The foreigner is billing the Indian Company through his Trust.  The bill is spilt into two components.

a. Visiting expenses covering to and fro Air fare, Boarding, Lodgong, Local travel and conveyance expenses

b. Consultation charges.

Request for clarification whether Service Tax is payable.

Regards

 

Replies (6)

yes.... service tax is payable under reverse chrge.....

Yes, As per Place of Provison of Service Rules, 2012 service shall be deemed to be provided in india as the location of the service receiver is in india. The service receiver is liable to pay service tax under reverse charge N/No-30/2012.

Dear,

Any service availed from foreign country and the same rendered  in India, the service receiver has o pay tax as per the Place of provision rules.

Yes service tax will be payable under reverse charge mechanism i.e. by the recepeint of the service. The company will have to obtain service tax registration.

What about rembursement of expense i.e. air fare, other charges.
The air fare lodging boarding conyeyance charges if shown separately on actual basis are not chargeble under reverse charges as same are used in India.

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