one of my client X who is registerd for service tax in India has entered into a contract with Y who is not in the taxable teritiory to provide services of inspection etc on need base.Y has asked X to provide services as per the agreement to ABC (who in taxable teritiory i.e in India)Can i treat this as export of serives by X to Y and them import of services by ABC from Y.Who has to pay the serives tax liability X or ABC?
in the first case it is export of service ,so there is no liability of Service Tax.In the second case both Service Provider and recipient are located under taxable terroteries,so it is not import of service.
Thank you for the reply.Sir as the service provider and service receiver i.e X and ABC are in India (taxable terittory) will POPS rules treat is as not export of services??If it is not export then X will have to pay the service tax as provider of services.Kinldy let me know if i am wrong.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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