05 August 2013
we are engaged in providing "consultancy engineering service". one of our clients has recd order in Dubai. So, in turn, we are asked to provide service at Dubai. So, we are physically providing services at Dubai but raising bill on our client at Indian address as he has no business place in Dubai. In this case, do we need to charge any service tax on our client?
05 August 2013
Hi Manish, The relevant rules applicable in your case are Rule 3, Rule 8, and Rule 14 of the Place of Provision of Tax Rules, 2012
Rule 3 (General Rule): The place of provision of a service shall be the location of the recipient of service
Rule 8: where the location of the provider of service as well as that of the recipient of service is in the taxable territory, shall be the location of the recipient of service
Rule 14: where the provision of a service is, prima facie, determinable in terms of more than one rule, it shall be determined in accordance with the rule that occurs later among the rules
Based on Rule 14, you are covered under rule 8, Hence Service tax is applicable and to be paid.
The service receiver is not defined under the statute hence as per my view your client is a service receiver who has business establishment in taxable territory .
15 August 2013
Dear Gopalkrishna sir, As per my view is that the Service provider is billing to the client who is in the taxable territory hence Service tax is applicable. (by applying rule 8)
Please enlighten us in respect justifying that it covers under Rule 3
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