23 July 2013
I am having a client, who is providing bpo service to customer in australia. But at present they have entered into a contract in which the payment we are receiving from indian party after deducting TDS. But the we are calling to the customers in australia on behalf of Indian Party.
25 July 2013
In the instant case, the contract is entered with Indian party and payment is also received from them. Indian party will be considered as service recipient although calls are made to people in Australia. Therefore, service tax is applicable.