ICICI

Service tax applicability ?


Sneha (Company Secretary)     19 February 2014

Sneha
Company Secretary 
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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 ?

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CA. Kuldeep Singhi (Entrepreneur)     19 February 2014

CA. Kuldeep Singhi
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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.

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Madhukar N Hiregange (Chartered Accountant)     20 February 2014

Madhukar N Hiregange
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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.

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

Dipjyoti Majumdar
CA in service & CS. dipmaj@ rediffmail.com  
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I am keeping this bookmarked as the issue has been addressed by learned FCA and ex CC member of ICAI Mr. Hiregange.

Regards,

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Sneha (Company Secretary)     20 February 2014

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


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