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Taxability of receipt from malaysia

CA Rahul Kumar Saini (Chartered Accountant) (31 Points)

16 May 2016

Dear all, whether payment against consultancy services received from Malaysia will be taxable in india also if tax is already deducted by Malaysian Co. , please explain the provision.

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renuka (Student) (480 Points)
Replied 16 May 2016

Service tax is a destination-based consumption tax. So if receiver is in India, service tax shall be levied on such service. How can tax be deducted by Malaysian co? Tax is deducted by receiver in certain specified cases and net payment is made to provider of service.

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Rucha A (Sr. Associate-Audit and Taxation) (174 Points)
Replied 17 May 2016

Hi. please refer notification no. 30/2012-ST as amended by 45/2012-ST that specifies

Rucha A (Sr. Associate-Audit and Taxation) (174 Points)
Replied 17 May 2016

Hi. please refer notification no. 30/2012-ST as amended by 45/2012-ST that specifies the criteria as- ST to be paid by receiver if the provider is providing service from a non-taxable territory to the person in taxable territory.

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