Service tax applicability

Queries 237 views 2 replies

CA.K.C.MAHATO

FINANCE CONTROLLER

60 Points Posted on 13 June 2016

Dear Sir,

I Have a query regarding Applicability of Service Tax on Following Case :

"A Ltd" is a Foreign Company not having any Establishment in india,who deals in Machinery Manufacturing in Outside India. A Ltd. Sold machinery to B Ltd in india. A Ltd Foreign Company having Agreement With C Ltd (indian Company) for Warranty Period Technical Support Service for Machinery which is located in India. Therefore A Ltd making payment in USD $ to C Ltd.

Here , Question is, Whether C Ltd is Liable for Service Tax under Warranty Period tecnical Support Service ?

Which Section Applicable ?

Replies (2)

urvi gandhi

Study

45 Points Posted on 13 June 2016

Hello sir,
As per rule -5 of place of provision of service rules,2012 the machinary is located in india so pop is india hence tax will be levied.

karan jit singh

Consultant

1299 Points Posted on 13 June 2016

Originally posted by : CA.K.C.MAHATO
	Dear Sir, I Have a query regarding Applicability of Service Tax on Following Case : "A Ltd" is a Foreign Company not having any Establishment in india,who deals in Machinery Manufacturing in Outside India. A Ltd. Sold machinery to B Ltd in india. A Ltd Foreign Company having Agreement With C Ltd (indian Company) for Warranty Period Technical Support Service for Machinery which is located in India. Therefore A Ltd making payment in USD $ to C Ltd. Here , Question is, Whether C Ltd is Liable for Service Tax under Warranty Period tecnical Support Service ? Which Section Applicable ?