04 April 2013
‘A’ is the recipient of the services from the territories outside India and TDS is borne by A only. Kindly advice A, wr.t. applicability and quantum of service tax and accounting treatment to TDS borne by him and allow ability of such expenses for the purpose of income tax assessment.
04 April 2013
There are Place of provision rules under service tax, under which if the particular case satisfies the conditions mentioned in the place of provision rules in export of service then there is no question of applicability of service tax.
RULE 6A (1) - The provision of any service provided or agreed to be provided shall be treated as export of service when a. the provider of service is located in the taxable territory b. the recipient of service is located outside India c. the service is not a service specified in the section 66D of the Act d. the place of provision of the service is outside India e. the payment for such service has been received by the provider of service in convertible foreign exchange; and f. the provider of service and recipient of service are not merely establishment of a distinct person in accordance with item (b) of Explanation 2 of clause (44) of section 65B of the Act.
By default, the place of provision of service is the place of recepient of service.
Therefore if the service is export of service then the question of service tax does not arise as per charging section 66B.
If the service tax is not applicable then, do the normal treatment of TDS in respect of such payment. i.e.
Creditor/expenses payable DR. To TDS payable To Bank.
but you need to obtain certificate from CA in form 15CB before making the payment and fill the form 15CA and upload form 15CA at tin-nsdl website.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
22 May 2013
Please sir read the question again carefully?
CAclubindia
