05 July 2011
whether service tax is applicable while reimbursing the project development expenditure( like travel, proportionate salary of the overseas partner employees etc)to overseas partner copany incurred by them for the jv company in india
the services of the employees of overseas partner were rendered in overseas only but for the benefit of jv company which is formed in india
05 July 2011
Foreign company sends their employees to India in connection with development of project of JV company in India. This may amount to import of services so as to attract service tax as long as foreign company and Indian company are different entities and the reimbursement is not in the capacity as pure agent.