SERVICE TAX FOR SERVICE PROVIDED AT FOREIGN COUNTRY

This query is : Resolved

R.Gangadharan (Querist)
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29 March 2009 Sir,

We are in an Automobile industry and undergoing a development work at German. Due to visa problem the work done by a foreign service provider at German.

While paying charges to Foreign service provider is it necessary render service Tax?

Please Guide.

Arbind Aggarwal

Arbind Aggarwal (Expert)
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29 March 2009 yes service tax is payable under reverse charge method and if are a manufacturer then u can take credit also.

Guest

Guest (Expert)

29 March 2009 I think it wii get covered under Export of Services Rules and no Service Tax is Payable.

Also ,since services are provided outside India by foreign servicve provider, no service tax need to be recovered under reverse charge.

>>Vipul

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Rajesh Kumar

Rajesh Kumar (Expert)
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29 March 2009 The question can only be answered after examining the nature of service and its use. Further, the question the whether it is cenvatable or not has to be seen within the definition of input service under Cenvat Credit Rules. Consult a professional for examination of your issue.

Raj

Raj (Expert)
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31 March 2009 If Service availed and used outside india ,consequently no service tax payable on that. But it is used for your indian manufactring defenitely service tax would attract , So it is matter of judgement of case as you have availed .