Service Tax on Services received in Nepal

kumar vivek (CA) (190 Points)

10 March 2010  

Hi Friends,

Need your intelligent views on the following matter.

A UK based MNC, through one of its  offices in India, is paying towards the Bill sent by Nepallese advertising company on account of advertisements (T.V) for its products manufactured in India. The former company is paying Service tax in India for the advertising services it is receiving in Nepal.

My querry is .....Whether Service tax charge is leviable at all  on the service receipient , since service is received outside India..

Please provide your inputs along with backings, if possible.