Hi..
I received a foreign invoice for consulting service in USD currency. Our company is in India. Invoice descripttion is just Consulting Service. In this case, how should I know whether if there is any exemption on the service or what is the reverse charge rate ?
Hope to see soonest respond from you all as I need to solve this issue by today.. thanks in advance for your kind help!!!
If service is provided by a person located in non taxable territory than service receiver is liabile to service tax. You are assuming that service is received by person located outside india you need to pay service tax at 12.36%
Refer service tax notification 36/2012 for more details.
Regards
Dayananda
Hi Dayananda
Thanks for your reply.
In case, service provider is foreigner (outside India) and service is received by person/ company located in India, what would be the tax treatment?
Thanks
Navy
Prima facie you need to pay service tax @ 12.36% If it is one time isloated transaction go ahead and pay it. If it is regular transaction than better to take leagl expert opinion.
Regards
Dayananda
Shyam S Gupta and Company
New Delhi
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