Import of Service?

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Sripada M (Querist)
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01 January 2009 Hi all,

Please answer the below query with reference to any section/ circulars/ Rules

X is a foreign service provider, ABC Ltd is a Indian service recipient.

If X provides taxable service to ABC Ltd, liability of service tax is on ABC Ltd. But the question here is, can ABC Ltd claim service tax credit on that, if

* the place of performance of service is outside India and used in India
* the place of performance of service is inside India and used in India

Nirav Vora

Nirav Vora (Expert)
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07 January 2009 According to section 66 of S.T act, any services covered in (105) of Section 65, provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India, and

received by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permanent address or, as the case may be, usual place of residence, in India.

such taxable service shall be treated as if the recipient had himself provided the service in India and accordingly the provisions of this Chapter shall apply to him.

Sripada M

Sripada M (Querist)
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12 January 2009 Thank you sir,

Can you please inform whether ABC Ltd(in the above example) claim the service tax paid in this regard???

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CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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12 May 2009 Required more clarity for your queries. As you asked the place of performance of service is outside India and used in India. which service it is. Since The import of services are classifed under three categories in Rule 3 of Taxation of services(provided outside India and received in India) Rules, 2006. The categories are:
i.Property related services
ii.Either be wholly performed or partly Performed based services
iii.Location of service receiver
Unless you give the nature of services you are providing, the qeustion would not be answered.