Service
133 Points
Posted on 17 February 2011
Refering to Rule 3(iii) of Taxation of Services (Provided from Outside India and Received in India ), it includes Management or business consultants services [sec 65(105)(r)] in its ambit and is import of services if it is received by a recipient located in India for use in relation to business or commerce.
As per the information provided , it seemed the service will be taxable and your co.will have to pay service tax under Reverse Charge mechanism.