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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.



Sneha (Company Secretary)     20 February 2014

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

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