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Transaction with foreign company

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04 November 2009 In case a foreign company is providing us the services, In this case that company will not charge the service tax then whether we r liable to pay the service tax to indian government for that service.

We are making full payment to that foreign company

04 November 2009 Service tax should be paid on "services provided from outside india and received in India".
It is in the hands of 'service receiver'.
For this purpose, such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly service tax has to be paid on that gross amoount.
If the recipient is an individual and such service received by him is otherwise than for the purpose of use in any business or commerce, then he may need not to pay service tax.



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