Hi,
We have received an order from a company in France (Euro currency Order) for carrying out commissioning services in one of the Indian sites. Do we need to pay serice tax to Indian governement for this service?
Kindly clarify.
thanks
Venkat
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Service tax on export order
Replies (2)
From 1/7/12, export of service is governed by Rule 6A of Service Tax rules 1994 read with POPSR Rules 2012.
Prima facie, it appears that though you will receive consideration from France into India in FC, the performance of service is in India even though the service recipient is outside India.
In my view this will be liable to output service tax.
Regards,
Mr. Venkat,
The commissioning is generally done of machinery, then
If such machinery is made available to you (supplied by party), then it will be covered by Rule 4(a) of the Place of Provision Rules, 2012;i.e., the place of performance will be considered, meaning it will be taxable by virtue of Sec.66B of the Act;
If such commissioning is completely done by you, then it will be covered by Rule 3, then the service recipient location shall be seen, then it will not be taxable.
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