Service Tax Registration for Foreign Company

Dear All

 I am  Narayana .  There is  one  UK based company registered  in UK. There is  one employee (other  employees in  UK) in this company in INDIA .  The employee  in india  is  of Indian  origin. ( There is no branch  in India ).  Company will serve  one Indianbranch  of  Foreign MNC .  Billing of this  service  will be in UK.  to HO of the MNC ( service receiver)

Whether  this service is taxable in India? If Yes What is  the  procedure  to register  this UK Company in India  under Service Tax.?.

 

Please clarify the above

Replies (8)
Hi Narayan if i understand your question right - the point you are making is that the service is provided in India, but the billing is from UK to a customer in India. if you answer to my understanding is yes. Service tax is applicable as long as services is provided in India Please check Circular 141 issued dated 13th of May 2011.

As per my understanding Indian branch is required to obain the registeration and would required to pay the service as reciepient of service under reverse charge method.

As per my understanding Indian branch is required to obain the registeration and would required to pay the service as reciepient of service under reverse charge method.

As per my understanding Indian branch is required to obain the registeration and would required to pay the service as reciepient of service under reverse charge method.

Dear Mr Prasad

 Thanks for  the  clarificatio.

 Please note that  eventhough service rendered  in Indian Branch  of the MNC, billing is from  UK(Service Provider) to MNC Head  office  at UK.  Billing is  not  addressed to Indian Branch  of the MNC (service receiver)

 Please clarify

Hi Rashi

 

 Thanks for the  clarifications.

Please note that  there is no indian  branch of the Service Provider Company. One  indian staff   provides the service. He is in the  roll of Head Office(UK)

you mean only the services is in India and the commercial all transcations happen at UK. I am still of the opinion ST is applicable, however since both the parties involved person raising the invoice and the person paying in overseas who should pay tax?? Let me check on this, a difficult proposition.

as the service is used by indian branch of MNC, how they can define it in their accounts if the bills are paid in uk? if this is not reflected in indian accounts then no question of st, as service tax applies only when some commercial transaction takes place.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 08 July 2026
Article internship

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 28 July 2026
Article/Intern/Semi-Qualified/Fresher B.Com

VNSS & Co

Mumbai

Others

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details