we are an IT company based in india, we develop websites and make tools for travel industry and maintain them. we have hired a server in USA from a USA Company and paying them an amount named as "SERVER HOSTING CHARGES" as fee. Whether there is any Service tax liability on us under reverse charge or otherwise on the above service received by us.
Looking for an earlier reply.
Thanking you
In this case service provider is located outside India but the recipient is receiving the service with in taxable territory.By the virtue of Section 66 A of the Finance Act the receipient of Service is required to pay Service Tax.So,it is your liability to pay the Service Tax on the amount payable to the U.S company.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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