Import of services (Under Reverse Charges of Service Tax)
Company A having its office in India, has hired a person from Foreign company B as CEO (Under Expat arrangement) from Company B but he was on payroll of Company B for total tenure he worked with Company A. CEO was getting salary from Company B and Company A was paying equalant to his salary to Company B through foreign remittances. Secondly company A was also paying his regular expenses in India such as rent, security charges, and house maintenance charges in India itself.
Can you please suggest me whether it will qualify in Reverse charges of service tax as import of services. If no, what is reasoning behind? If answer is yes what amount will be taxable? Amount paid out side India or both Amount Paid In Indian with Amount paid in Foreign.
CAclubindia
