service tax on CBS service provider by a service provider

Queries 734 views 6 replies

Jay Bodha

Employed

139 Points Posted on 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

Replies (6)

U S Sharma

glidor@gmail.com

21068 Points Posted on 15 March 2011

service is provided in india, hence taxable

Jay Bodha

Employed

139 Points Posted on 15 March 2011

Originally posted by : U S Sharma
	service is provided in india, hence taxable

Sir under which category of service will it be taxed ie IT or Business auxilary ser vice and what about the contract between A(UK) Ltd and the bank receiving the service

Pankaj Arora

Learner

3134 Points Posted on 15 March 2011

Service category will be IT Service..........

Jay Bodha

Employed

139 Points Posted on 16 March 2011

so A(INDIA) Ltd shall raise a bill for such services under IT Services along with service tax and further it won't be covered under export of services

Also sir your answer didnot covered the treatment for the contract between A(UK)ltd and the bank receiving services