Import of Service

This query is : Resolved

rajeshbengani (Querist)
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25 April 2009 Company X is a foreign company provides service to Indian Company Y with the help of another Indian Company Z. AS per Section 66A it is liability of Company Y to pay service tax on behalf of Company X. Also Company Z would be charging service tax on Company X for its services. Whether Company Y can adjust this service tax as charged by company Z while paying service tax on behalf of Company X ?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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26 April 2009 The service tax which you have to pay on import of service has to be paid to the government account. You cannot adjust against your available service tax credit.

However the amount paid by you is eligible for input service tax credit which can be adjusted against your sale or any servie provided as a seller or service provider.