30 October 2012
Payment in respect of services recieved to non-residents is covered under reverse charge and consequentially the service recipeient is person liable to pay service tax directly to the Govt....
30 October 2012
The reason for same is that US vendor is located in non-taxable territory where Service Tax law is not legally enforceable and thus Indian Govt cannot ensure recovery from US and thus entrusted the responsibility to service recipeient located in taxaxble territory.
CAclubindia
