Service tax applicability

Services provided to a foreign Company in India would be taxable since services are provided in taxable territory i.e. India

Any reference section?

Please refer charging section 66B of Finance Act 1994 read with Place of Provision of Services Rules, 2012

As per Section 66 D of the Finance Act, 1994, 'there shall be levied a tax (hereinafter referred to as the service tax) at the rate of fifteen per cent on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed.

As per rule 3 of the Place of Provision of Services Rules, 2012, 'the place of provision of a service shall be the location of the recipient of service'. Your service does not fall in any of the Rules 4 to 11 of the said Rules or in the negative list of services or in the list of services covered by any exemption notification. In your case, the service recipient is located abroad and so, the place of provision of service is a non-taxable territory. Therefore, you need not pay service tax on such services.

Respected Sir,

Section 66D deals with Negative List and Section 66B is the Charging Section