Import of service

This query is : Resolved

reena (Querist)
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13 December 2008 A company in India has entered into a Joint venture with a foreign company, say ABC Ltd(dealing in shares), to promote the Indian capital market. The Indian company has its staff deputed in the foreign company. The foreign company -ABC Ltd, enters into an agreement with the Indian company to market the produts of Indian capital for which a Marketing Fee will be paid by the Indian company.
Does this constitute Import of Service? Is Service tax payable by the Indian company in India on the Marketing Fee paid abroad?

C A GROUP COACHING

C A GROUP COACHING (Expert)
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28 December 2008 UNDER SERVICE TAX IN CASE OF IMPORT OF SERVICES THE PROVISION IS CLEAR THAT THE SERVICE RECEIVER IS RESPONSIBLE TO PAY SERV TAX ON BILL AMOUNT