Hai,
We have MNC company with Spain collabaration, the Spain (Mother company) wants to give the Service to Indian collabarated company for its technical services,
the querry is
Is it necessary to register with service tax for foreign company for its services in India (to raise the bills on India company)
or if its not necessary how can services to be treat???
Thanks in advance to all
Only the Indian company providing services in India or outside India is liable to be registered with ST Dept.
Hi Suresh
If you are talking on behalf of Spain company it is not necessary to register under service tax in India. However please check the PE status of the Spain Company.
If you question is on behalf of an India Company receving services from Spain, yes the Indian company has to pay service tax on reverse charge mechanism and Input credit / refunds can be claimed against such payments.
Hope it answers your question, if not please reply back
CAclubindia
