13 July 2009
Our Company, based in India, has paid lead managers fee in foreign currency for a foreign based service provider for issue of FCCB. Apparently, services were rendered and consumed in a foreign country.
Are we liable to pay service tax on payments made to Foreign based lead manager? If so, under what section.Please clarify.
13 July 2009
If the service is in relation to business and commerce, and the category of service falls under third category then irrespective of performance service tax will need to be paid.
This service most likelty to fall as arranger fees falling under banking and financial services and subject to service tax under reverse charge
CAclubindia
