Service tax- event management -

Dear Sir,

 

I have 2 queries

 

We are an event management company in India and our client is based in the USA. They are organising a 2 day conference in Bangalore for which they are paying us money via Wire Transfer from their US Dollar account. The service however is being rendered in India please note. The US client does not have any offices in India. Under such circumstances are we supposed to collect Service tax from the client.

 

 

We are an event management company in India & our client is an Indian Company based in India. The company is conducting an event for its Star Employees outside India eg. Dubai or Thailand. The service therefore is being rendered Outside India entirely. Under such a circumstance - Can I bill the client in Indian Rupees without charging service tax?

 

Thanks

Replies (1)

Your case is pertaining to the Place of Provision Rules, 2012, wherein the events are covered vide Rule 6.

Hence, the place where the event takes place is considered to be the place of provision for the services.

1st: It will be taxable as the event took place in India;

2nd: Since, the event was organised by the company for its own employees; there are no two persons involved, the service is being provided by the company to itself only. Hence, it is not a service. Further, there won't be a consideration in this case. Therefore, no service tax liability arises.

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