15 March 2013
We have received a bill from a foreign company for the testing work done by him on behalf of our company. We have made him payment also in foreign currency.
Service Provide - Foreign company Service provided at - Outside Country Payment made by - our company ( a domestic company) Service recipient - Foreign company (our overseas supplier) Nature of Service - Lab testing of materials
Will this transaction come under the preview of IMPRT OF SERVICE ? Are we liable to pay service Tax on the same.
17 July 2013
No. No service tax is payable when the services have been rendered outside India. The only thing is this you have to follow the provisions of Section 195 and since it is outside India it is also not applicable and while sending the payment you require CA certificate.
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