Applicabilty of service tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2013 Hello Sir,

Please clear the following query-

X LLC (USA) is a wholly owned subsidiary of X India (Delhi). X LLC is providing telecommunication services to clients in India through X India (outsourcing). The client pays directly to X LLC in USD (and not to Indian Company). The Indian company raised invoice to X LLC for providing services to its clients in India and receives payment in USD.

Now, I want to ask-
1. Is it covered under export of services?
2. What is the place of provision of service?
3. On whom the liability to pay ST arises, if any. (Considering reverse charge mechanism also)

Thanks in Advance!!

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 October 2013 if ultimately services are provided in india only then there is no export of services,
as for exporting it should be directly provided outside india from india.

Ans2.India
Ans3. Reverse charge mechanism not applicable.

This are my views wait for others to comment.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2013 Thanks Sir, Please confirm Should X(India)charge service tax on invoice raised to X (LLC)?

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Rajesh Kumar

Rajesh Kumar (Expert)
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22 October 2013 The issue has been settled by larger Bench judgment of CESTAT in Paul Merchants case. X is not required to charge any Service Tax from X LLC as it export of service.

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2013 Thanks Rajesh Sir, Can you please share that case too?