Hi All,
One of my clients is importing internet service from its Headquarters in Switzerland. Is it liable to pay service tax under reverse charge? Can I apply the concept of 'Service provided to ourself' and hence avoid this tax?
Deepika Kochhar (Chartered Accountant) (54 Points)
28 March 2012Hi All,
One of my clients is importing internet service from its Headquarters in Switzerland. Is it liable to pay service tax under reverse charge? Can I apply the concept of 'Service provided to ourself' and hence avoid this tax?
CA Ganesh Karthik
(Chartered Accountant)
(368 Points)
Replied 29 March 2012
Dear Ms Deepika,
Pls refer Sec 66A(2), "Where a person is carrying on business through a permanent establishment in India and through another permanent estabilsement in a country other than India, such permanent establishments shall be treated as separate persons for the purpose of this section (i.e. Sec 66A)"
Hope this clarifies your doubt
Deepika Kochhar
(Chartered Accountant)
(54 Points)
Replied 30 March 2012
Ya.. Thank You so much.. :)
nitin suvarna
(C.A FINAL)
(828 Points)
Replied 30 March 2012
so accordingly it will be the person with PE in india who will be liable.......hope i am correct)))-
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