A is exporting engineering services to the USA and earning foreign exchange -clear that there is no service tax for A as it is export of services.But from time to time A uses the services of a foreign consultant B (who has no base in India) to assist in his studies and pays him also in foreign exchange and submits the final report to the foreign customer..Now is the payment to the foreign consultant B liable to attract service tax -as the services are ultimately consumed abroad some feel it is not while some feel it is under reverse charge mechanism..any pprovision to clear this up in ST rules??
CAclubindia
