Service tax on service consumed in china

One of my client is importing some material from China which requires some testing certifications. For these certifications our foreign supplier arrange testing agency which took material samples from supplier's premises & perform testing & again after testing submit tested material alongwith certificate of tested material with our China supplier.

But bill is raised by testing agency in our name (in USD currency) not in the name of foreign supplier who arrange that agency.

Now, my query is relating to Service Tax, whether the same would be applicable, as service provided and service rendered both are in non-taxable territory.

Please give your valuable opinion.

Replies (2)

Services provided and received outside India are not subejcted to ST.

Further the service of testing material under the Place of Provision of Supply rules falls under Rule 4 which is the place of the material when service provided- which is China. Not liable as per POPS also. 

Sir, is it possible to do tax planning in st just like income tax?...and if gst is at 18% doesn't services become very expensive as compared to current rates.....

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