Tax liability on import of service

This query is : Resolved

Sandeep Gupta R (Querist)
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09 March 2017 Hi,

Please, Help me to know that how to tax on import of service for example ., Mr. B is a service provider having office in India (i.e., within taxable territory) provide service to Mr. A who also reside in India. Mr. B also utilize the service of Mr. C who reside abroad (i.e., out of the taxable territory ) to accomplish the service which was agreed between Mr B and Mr. A.
So what is tax liability in the hands of all party i.e., in case of:
a). Mr. A
b). Mr. B
c). Mr. C

Assuming
- service provided is taxable service
- non of the party fall under SSI category
- Period is FY 2015-16
- Mr. B is not an agent of Mr. C, he act as independent professional practitioner

Thank you in advance
:)

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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10 March 2017 There is no liability in the hands of Mr. A and Mr. C. Mr. B has to bear service tax liability in following manner: -

- Service provided to Mr.A -> Normally
- Services received from Mr. C -> Mr. B has to pay service tax under reverse charge on amount of service taken from C as import of service is covered under reverse charge i.e. service receiver has to bear the tax liability

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Sandeep Gupta R

Sandeep Gupta R (Querist)
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10 March 2017 Thank you for your response....
please tell me any notification or section where I can know more about it ...

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CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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10 March 2017 Notification of reverse charge - Notification No. 30/2012-Service Tax dated 20th June 2012

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