Reverse charge mechenism

This query is : Resolved 

04 October 2016 Dear Expert,

Please advise, if service provider is a foreign company, service recipient is an Indian company and place of service is Outside India.
Please advise whether ST is chargeable under reverse charge mechanism for Indian company?

04 October 2016 Tell me the nature of service. No reverse charge applicable in case of exibition services, hotel and intermediary services provided out side India to an Indian company.

04 October 2016 Sir,

We have bought 2nd hand machinery from Switzerland. The services are related to dismantling the machinery there. We have given contract to a Netherlands company


04 October 2016 This service is rendered outside the taxable territory so no reverse charge applicable.

04 October 2016 Thank You so much Sir. Could you also advise on TDS portion. Do we need to deduct TDS while paying to Netherlands company?

04 October 2016 No need of TDS as service is rendered by non resident outside India.

05 October 2016 Looks like the place of provision of service is outside India. Since service tax is a destination based tax, there will be no levy of service tax on services provided outside the taxable territory.

05 October 2016 Dear Sir,

Just for my own knowledge, if the contract with Netherlands company include services of:
1. dismentling the machinery in Switzerland and
2. reassembling the machinery in India in the original form as was in Switzerland,

then would ST and tds be applicable?


05 October 2016 TDS and ST will be applicable on reassembling the machinery in India.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries