04 December 2010
We have received bill from France, Professional & technical charges, pls suggest us, we liable to pay service tax or not & if the contract is Indian consultant / lawyer /Contractors with foreign company & thereafter foreign company (our parents company) reimbursed to Indian company than what is the effect of service tax
07 December 2010
In the first case u are liable to service tax u/s 66A. You are required to get the Service Tax Regn. from the dept, assess the Service Tax (presently 10.3%) and deposit the same. U will get the cenvat credit of the Service Tax paid by u as the same amounts to input service.
In the second case, it would amt. of export of service and not liable for service tax.
CAclubindia
