Service consumed abroad and in India

V.ganapathy (consultant) (87 Points)

13 June 2011  

Is there a difference between these following two cases as far as service tax payment is considered:

1.A who is an induvidual in India provides service to a US company. B (export of service) having no PE or business in India.

He takes the help of a NRI induvidual C to provide some technical information when he is in USA and it is passed on to B. A  pays C in foreign currency for his time. C has no office in India.Per DTAA C's income is taxed in USA and not in India. also it is not an income coming under sec 195 for C. 

Is it taxable income for C in India? TDS or service tax required to be paid or not? 


2.. A gets help of C when abroad for a project in India and pays in foreign currency. here I think it is clear both TDS and service tax are applicable even when A gets the help of C while abroad. 

Comments from experts pl.