25 September 2012
Dear Sir, I have a query regarding the levy of Service Tax on some services. Suppose there is a Packer & Movers Company and provide the relocation services to its clients. It has to shift the client's household items to Singapore. Now after packing & loading the goods on the port, goods are sent to Singapore port and there it take the services of agent to move the goods from Singapore port to its final destination, i.e. at client home situated in Singapore. For this services provided by agent to it, agent raises bill on it and company do payment. Now my query is this, whether this payment made by company to its foreign agent is exempt from Service Tax under reverse charge mechanism??? As there is a Notification No-8/2011 of ST which exempt this services from the levy of ST. Kindly solve my query and obliged.
26 September 2012
This would require the analysis of the Place of provision of services rules. Rule 10 state that the same is to be destination of the goods which is outside India in this case and therefore there may not be levy.
CAclubindia
