12 November 2010
Our client is a software company. we are giving training to employees of a foreing company in their country. The foreign company is a subsidiary of indian company.My question is whether we are liable to pay service tax on training income.
12 November 2010
You will be liable to pay service tax, if service provided with in India. If you give training to other country employees, you need to confirm where you will bill it whether the foreign country or indian company. If you bill it to indian company then you are liable to pay service tax. Payment also should be received from indian company.