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Liability of Service Tax

Service Tax (Legacy) 1147 views 2 replies



when the foreign comapny is a parent company having its branch office in india. The branch is providng taxable service to parent company and raising the Invoice on its parent company for that service. However the service so provided either directly to the parent comopany or on behalf of the parent company to its client in india.

whether such service by branch office is liable to service tax??

Replies (2)
The liability for service tax arises on the basis of citus of service provider and the citus of services rendered. it is more important to check the citus of services rendered. if the citus of services rendered is in India, then it shall be taxable under the Service Tax. In this particular case, the branch is liable to collect and deposit the service tax on behalf of its head office.
Hi, as per your query, i suggest that first all barnch providing taxable in Indai or outside India i.e. export of services. If services provided in India then it is taxable in the hands of branch.


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