My client XYZis an Management consultant . It hires a foreigner conultant ABC to provide services to one of the clients PQR of my client. Now i have raised bill to PQR raising service tax and making payment to ABC after deducting TDS . But shall i need to to pay service tax on behalf of foreignor also.????
I think it is covered under import of services and therefore reverse charge is applicable and 100% service tax liability has to be discharged by the service reciever.
the service is being provided from non taxable territory to taxable territory which is covered under RCM. In my opinion, service tax shall have to be paid, However, i believe Cenvat Credit of the same can be availed.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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