We are an IT company and we pay an annual fee to company situated outside India called Salesforce.com. This is paid in USD and it is for partner program membership i.e. once we pay the fees, we are their registered partner.
Is service tax applicable for this payment? if yes, how much should the service tax be paid if the amount paid in INR (after conversion) is Rs 40000?
No Service Tax to be paid.
| Originally posted by : RajeshShah | ||
 |
We are an IT company and we pay an annual fee to company situated outside India called Salesforce.com. This is paid in USD and it is for partner program membership i.e. once we pay the fees, we are their registered partner. Is service tax applicable for this payment? if yes, how much should the service tax be paid if the amount paid in INR (after conversion) is Rs 40000? |
 |
would you more elaborate regarding this annual fee ? what are the benefits ? are you reprenting them ?? Partner program?
Membership to partner program has various benefits:
| Originally posted by : RajeshShah | ||
|
Membership to partner program has various benefits: Helps customers of the software (Salesforce.com) to approach us for business since we are registered partner. We can earn commission from the customer if they purchase the software via us. |
|
okay
Now I understood. No service Tax is chargeable since POPS fall outside the Taxable territory
Regards
Karanjit Singh
+91-7503588224
Thanks Karanjit for confirmation.
Dear Mr. Chirag,
Please review the below mentioned Link.
/articles/applicability-procedure-of-service-tax-under-reverse-charge-21184.asp
List of Services under Reverse Charge : Point No. 9
| Originally posted by : shreyansh | ||
|
Dear Mr. Chirag, Please review the below mentioned Link. /articles/applicability-procedure-of-service-tax-under-reverse-charge-21184.asp List of Services under Reverse Charge : Point No. 9 |
|
Hi shreyansh.
This would be applicable only if POPS falls under taxable territory. please refer POPS rules, 2012
Regards Karanjit Singh +91-7503588224
Read also /forum/krishi-kalyan-cess-pending-payments-361722.asp
Its Import of Service
| Originally posted by : shreyansh | ||
|
Dear Mr. Chirag, Please review the below mentioned Link. /articles/applicability-procedure-of-service-tax-under-reverse-charge-21184.asp List of Services under Reverse Charge : Point No. 9 |
|
Thank you Shreyansh. Under point 9, it mentions, Taxable services. Why would this payment be a taxable service?
| Originally posted by : shreyansh | ||
|
Its Import of Service | |
Sorry shreyansh, I can understand your feelings. But Act and rules are much beyond the emotions.
CAclubindia
