Service tax issue

Hello frnds,

Please solve the query in respect of taxability of service tax :-

Service Proveder :- A Ltd ( In India)

Service Receiver :- B Pvt Ltd (In India)

Commissioning Service provided by A Ltd to B Pvt Ltd at Africa because of plant of B Pvt Ltd is there. 

Service tax chargable by A Ltd or not...???

Kindly respond asap.

Replies (3)

As per Rule 8 of Place of provision of service Rules,2012(which overirides rule 3 to 7)-Where both service provider and s. receiver are located in India then irrespective of place where the service is actually performed the location of service receiver is deemed as Place of provision....

thus in this case place of provision is India hence service taxable as per Sec 66B......

thank you sir,

It means it is irrelevant that the commissioning service has been performed out of India. If the services performed out of Indian territory then it will also be taxable under service tax.

Kindly clarify.

yes correct....thats what Rule 8 says

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