01 June 2009
We are Forex Broker.We have entered into an agreement with some London based Company to provide us a software so that we can access online data of some other Countries.We have not been Registered under on line data processing under Service Tax Act. Please advise whether payment made to said Company will cover under Inport of services and we have to pay Service Tax on that if yes, then whether we have to register seperately under the head on Line data processing and retrival ubder Service Tax Act. And whether payment of Service tax will be eligible for CENVAT Credit
01 June 2009
You have to pay service tax under section 66A of the Ch V of the Finance Act,1994 on the payments made to the foreign company as the services you are importing is taxable under "Online Information and Data Base Retrieval Service".You are eligible to take CENVAT on the service tax payment so made if the said service qualifies as input service for the taxable service you are providing.
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