Service to foreign manufacturer

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2014 A foreign manufacturer (principal) sells goods in India to its customers (ultimate customer).

They have an agreement with an Indian company (agent) to provide marketing, commercial support, user training and after sales service to the customer on behalf of a foreign manufacturer.

The Indian Company is paid a commission in foreign exchange by the foreign manufacturer. No amount is received from the ultimate customers.

Further, the foreign manufacturer does not have any place of business in India.

Considering the Place of Provision of Service Rules 2012, will the service be outside the purview of service tax as the recipient of service (foreign manufacturer) is located outside India.

CA DEEPAK S K

CA DEEPAK S K (Expert)
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24 May 2014 You can refer case of Simpra Agency vs CCE Delhi by CESTAT bench in the year 2014. The facts of your case matches to them to an extent.

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 Thank you Mr. Deepak.

The case referred by you is indeed similar to the query raised by me.

However, it pertains to services rendered in 2010-11, i.e. before Place of Provision of Service Rules, 2012 were in force.

I wanted to know if there is any change in the status after applicability of Place of Provision of Service Rules.

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