07 March 2016
The assessee is a refiner located in India and is engaged into manufacturing of Gold Bars. For this he has to import Gold Dore from out of India. He needs to pay purchase commission to intermediaries located out of India for helping procurement of Gold Dore. Does assessee need to pay service tax on such purchase commission paid by him out of India?
Guest
Guest
(Expert)
07 March 2016
No service tax is not payable in this case because the place of provision for intermediate service is deemed to be considered the place where the intermediary (i.e service provider) is located, as per Rule 9 of Place of Provision of services rules 2012. Hence this is considered as a service provided in a non taxable territory and not chargeable to Service Tax