X LLC (USA) is a wholly owned subsidiary of X India (Delhi). X LLC is providing telecommunication services to clients in India through X India (outsourcing). The client pays directly to X LLC in USD (and not to Indian Company). The Indian company raised invoice to X LLC for providing services to its clients in India and receives payment in USD.
Now, I want to ask- 1. Is it covered under export of services? 2. What is the place of provision of service? 3. On whom the liability to pay ST arises, if any. (Considering reverse charge mechanism also)
17 October 2013
if ultimately services are provided in india only then there is no export of services, as for exporting it should be directly provided outside india from india.
Ans2.India Ans3. Reverse charge mechanism not applicable.
22 October 2013
The issue has been settled by larger Bench judgment of CESTAT in Paul Merchants case. X is not required to charge any Service Tax from X LLC as it export of service.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
22 October 2013
Thanks Rajesh Sir, Can you please share that case too?