Urgent service tax query

Hope you are connected to ABC ltd. and are asking your query in relation to ABC limited. To my knowledge the services provided by the Foreign company are covered u/s 65 (105) (zzi), which states that: "taxable service" means any service provided or to be provided, to any person, by a technical inspection and certification agency, in relation to technical inspection and certification.

As far as TDS is concerned, it should be deducted u/s 195 as the payment is made to a Foreign company..

@ CA Prabhat Gupta- Yes i'm connected to ABC Ltd  and Thnx for the reply, i was also thinking the same but was not sure

tell me 1 more thing, in this case are the provisions of DTAA i.e Article 7,14 and 15 are applicable or not?

As the service provider is a Non resident, you will have to pay service tax on reverse charge basis as provided in Rule 2 (1) (d) of Serive Tax Rules, 1994.

As regards your query on DTAA, let me first go through the articles in detail so that I could give you a correct reply.

This is import of service in the hands of ABC Ltd taxable under Technical Testing . Regrding TDS I feel that it is not applicable if XYZ has no PE in India.

can u guide me please in this situation? what is the penalty in service tax when no business started after obtain service tax registration number?
and also nil returns are not filled by the assesse form last 4 years (After obtaining registration number also no business is started)

Originally posted by : Deepa
	can u guide me please in this situation? what is the penalty in service tax when no business started after obtain service tax registration number? and also nil returns are not filled by the assesse form last 4 years (After obtaining registration number also no business is started)

on 1st hand , surrender the registration, stating that the company has no service tax business since registration.

day by day complicating the service tax penalties will make the life tough for defaulters, and for the persons who are not submitting the returns.

department will ask to regularize the returns on 1st visit, but submit the balance sheet copies with P.L accounts where no taxable service is provided, and on scurtiny department will do the needful, towards cancellation of RC