Service tax credit

This query is : Resolved

Dattatray Bhat (Querist)
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22 July 2013 Dear Sir,

We are a trading company in India. Our buyer in India placed an order on our Singapore Supplier directly. Now Singapore Supplier is transferring commission to us for this transaction, on which we have billed Service Tax to Singapore Supplier.

Can the Singapore Supplier claim this Tax amount as a Credit in Singapore. Kindly advise.

Regards,

DS Bhat
Finance Controller

Jayant Bothra

Jayant Bothra (Expert)
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22 July 2013 Dear Sir,

I would like to ask what services you are offering to the Singapore client. On reading the query posted by you, I am of the opinion that the transaction is just trading of goods which is exempted under Section 66D (Negative list) of Finance Act, 1994.
Secondly, if you are providing some services to Singapore client outside India then you are not liable to charge service tax as Singapore falls under non-taxable territory and services provided from taxable territory to a non-taxable territory is exempted from service tax.

Thanks & Regards
CA Jayant Bothra
email: ca.jayantbothra@gmail.com
M: 9873-626-020