Payment to us vendor towards medical transcription services

This query is : Resolved 

30 October 2012 Hello,

We need to pay to US vendor for Medical Transcription Services. We need to deduct or pay any Service tax

30 October 2012 Payment in respect of services recieved to non-residents is covered under reverse charge and consequentially the service recipeient is person liable to pay service tax directly to the Govt....

Hope this would settle the issue...

30 October 2012 Thanks

Means as a recepeint our company has to pay service tax because US vendor is not interested to pay service tax.

Right ?


30 October 2012 The reason for same is that US vendor is located in non-taxable territory where Service Tax law is not legally enforceable and thus Indian Govt cannot ensure recovery from US and thus entrusted the responsibility to service recipeient located in taxaxble territory.



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