import of service

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chandanshah (Querist)
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29 November 2009 A MNC(Software co)incorporated in india opens it branch in germany for that it pays technical service to a non resident for the service realated with opening of branch in germany.
MY question is whether it can be called as import of service by the MNC company.
you can send me your view on chandan_shah1@yahoo.com

Pankaj K Gupta

Pankaj K Gupta (Expert)
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29 November 2009 As per service tax rules, if a service is imported into India and used here, Service tax liability is on importer. Now in the instant case, it looks like that service is imported into India , the benefit / result of which is not apparent in India but at Germany as a foreign Branch, I would suggest that Service tax be paid.