Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Sneha (Company Secretary)     19 February 2014

Service tax applicability ?

An Indian Company appoints one agent in India to promote & sell their goods in Nigeria. The agent goes and provides the said service in Nigeria. So, is service tax applicable on the bill raised by the agent in India ?



 4 Replies

CA. Kuldeep Singhi

CA. Kuldeep Singhi (Entrepreneur)     19 February 2014

Yes , as per rule 8 of place of provision of service rules,2012 where both service provider & service receiver is located in taxable territory but service is provided outside taxable territory then also Service tax will be applicable.

Madhukar N Hiregange

Madhukar N Hiregange (Chartered Accountant)     20 February 2014

Rule 8 is applicable for an intermediary for services ONLY not for goods. Therefore in this case not applicable

 

In this case rule 3 would apply as marketing services and since the recepient is in India laible to ST. However an exemption is available upto 10% of FOB value of exports which can be claimed.

1 Like
Dipjyoti Majumdar

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com )     20 February 2014

I am keeping this bookmarked as the issue has been addressed by learned FCA and ex CC member of ICAI Mr. Hiregange.

Regards,

Sneha

Sneha (Company Secretary)     20 February 2014

Thank you so much sir for clearing my doubt. I am really obliged.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Start a New Discussion

Popular Discussion


view more »







Subscribe to the latest topics :
Search Forum:

Trending Tags