12 January 2011
I had a query If a Foreign Company recieves a contract of Overhauling of machinery from Indian Company( Say A ) and the the Foreign Company outsource that contract to the another Indian Company ( say B ). My query is that when the Indian Company ( B ) will raise the invoice to Foreign Company, Will it be treated as Export of Service and accordingly whether we need to charge the service tax.
12 January 2011
i believe B which will raise invoice on foreign company for services value to be received in convertible forex will not be liable to service tax.
While A Company which will be receiving the services thru the foreign company will have to pay tax as reciepient of services U/S 66A
24 February 2011
Service tax will be applicable as both companies are resident of india. The services provided will be treated as services provided in India.
CAclubindia
