Import of services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2013 I am into a company which is into business of film post production, for that they use to import the services from abroad.

Whether they are liable to pay service tax ?

then under which rule ?? & what are consequences if they are not paying the srvice tax on import of services & filling the service tax return as it is.

CA Vijeta Verma

CA Vijeta Verma (Expert)
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06 October 2013 As far as my knowledge is concerned ,you are required to pay service tax under reverse charge mechanism.
Accordingly,you are also required to be registered as per service tax laws irrespective of your turnover.penalties will be levied on account of non -registration,non-payment of service tax,failure to furnish return

CA Pallav Singhania

CA Pallav Singhania (Expert)
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06 October 2013 If you are receiving the services from a person who is not having a permanent establishment in India, you become the deemed service provider.

You are therefore required to obtain registration and pay the service tax on behalf of the foreign service provider.

While remitting the amount to foreign service provider TDS is deducted from the amount payable. for the purpose of Service tax, the taxable value includes this Service Tax. You have to therefore pay service Tax on the gross amount including TDS.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2013 thanks aryan bhai