service tax on CBS service provider by a service provider

746 views 6 replies

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)

 service is provided in india, hence taxable 

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 

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

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

 

Yes raise invoice to A(UK) Under IT service and charge service tax… A(UK) ltd will raise invoice to bank on contract service…

Well sir whether this service as provided by A(INDIA)Ltd toA(UK) Ltd will not be categorised under business auxiliary service

also whether this service is faslling ub=nder the scope of Export of services or nto

THANKS

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