Service tax on service provided outside india

Queries 1126 views 5 replies

Dear All ,

Service provider is in India

Service Recipient is in India

Invoice is raised in India

BUT................Service provided outside india

Whether Service Tax is apllicable ? please quote notification and circular no. with your reply

THANKS

Replies (5)

Dear Pratik,

The above services are taxable in India as per Rule 8 of Place of Provision of Service Rules, 2012.

Text is under:

RULE 8. Place of provision of services where provider and recipient are located in taxable territory. — Place of provision of a service, where the location of the provider of service as well as that of the recipient of service is in the taxable territory, shall be the location of the recipient of service. 

Hope it is clear.

Kindly brief the nature of service rendered to comment on the applicability of service tax.

Bcoz, as per POPS rules', whichever rule appears later is applicable if it falls under more than one category.  Therefore, Rule 8 is not the only deciding criteria.

 

For all services otherthan transportation services POS will always be in India.

later Rule 9: location of the service provider: i.e. In India.

Other later rules only for transportation.

I do agree Mr. Narottam.  However, let us get the feedback from the person who has posted the query.

Service provider is freight forwarding agent


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