Service through internet

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Praveen M R (Querist)
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30 May 2008 If a US based company provides a service via internet to people in India, will it attract service tax?
Should the company have a service tax registration as a foreign entity?

Thanks
Praveen

Shyam Lal Naik

Shyam Lal Naik (Expert)
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30 May 2008 If a taxable service, it will attract service tax.

The company does not need service tax registration.

It will be treated as import of service. The service receipient will be liable to pay tax.

Praveen M R

Praveen M R (Querist)
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30 May 2008 Thanks Shyam for the quick response. It is a taxable service being charged in Indian Rupees. You mean that the receipient will be liable to pay service tax on it in India?

Thanks
Praveen

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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30 May 2008 Yes. In case of import of service, service receipient are liable.