Place of provision of service

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Tarun Dugar

Article

22 Points Posted on 04 August 2014

I want to know whether the service tax is payable in India in the follwing Case: -

An Indian Exporter Company receives service from a Commission Agent Situated Outside India for exporting the goods outside India and Pays the commission in foreign currency.

So whether the indian co. is required to pay service Tax under Reverse Charge.

Replies (2)

Saurabh Maheshwari

B.com ACA

4340 Points Posted on 04 August 2014

As pe Rule 9 of POP Rules,2012- in respect of intemediary services ( not including intermediary in respect of goods) place of provision is location of service provider....However, in case of intermediary in respect of goods place of provision is location of service receiver(As per general rule 3), thefore in your case Place of provision is outside India and thus not taxable as per Sec 66B.

However , vide Notification No. 14/2014(to be efffective from Oct1,2014)

The place of provision in case of intermediary services (whether in respects of goods or services) POP is the location of service provider...therefore in your case service is taxable w.e.f Oct1,2014