service tax on CBS service provider by a service provider

Jay Bodha (Employed) (139 Points)

15 March 2011  

Hi,

I am a student and facing the difficulty to decide the category and taxablity of following service

 

There is a company A(India)ltd who is in agreement with A(UK) Ltd for the following contract:

That it will provide maintaince of server and like service to banks using CBS system on behalf by A(UK) Ltd and A(India) ltd shall raise bill for its value on to A(UK) ltd only.

The A(UK) Ltd shall also pass on some hardware parts for theprovision of bank server maintaince service .

the querry is as following:

1 is contract between A(India) Ltd & A(UK) Ltd is a service contract or not?

2 Is it taxable service if answer to 1 is yes, and category of service where it shall fall i.e. either it is business auxilary service or IT Service or Outsourcing work?

3 If it is a service then this contract is an Expotr os service or not?

4 Is service provided by A(UK) Ltd to bank taxable under service tax or not?

 

With hopes of early reply from the club

Regards

JAY