Service tax liability if foreign company is service provider

As per Notification No 30/2012 - ST dated 20.06.2012, if a serivce is provided or agreed to be provided by a person situated in non-taxable territory  and received by any person who is located in the taxable territory in such case the service receiver is liable to pay service tax on full taxable value.

To determine the location of serivce provider Place of Provision of Service Rules, 2012 to be referred. 

It appears as per the limited facts given here that place of provision of service is as per default rule 3. Under this rule, the place of provision of maintenance service is generally the location of service receiver.

Therefore, the receiver has to pay full 14.5% service tax under reverse charge basis to Govt of India.

If the maintenance services are relatable to any immovable property, and the relation be very direct then location of the immovable property would be the place of provision of service. If the place of provision is outside India, no service tax.

Regards,