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Clarification on notification no. 14/2014-st, dated 11.07.20

Ram kr. (Buisness) (883 Points)

23 January 2017

Dear Sir, One of our consignment Agent is located in Jammu & Kashmir selling our goods on commision basis. (Non Taxable Territory). Secondly, We have paid foreign expenditor regarding Advertisement/Exebition, Fees & subscripttion, Legal & Professional and Training Expenses etc. Whether we are liable to pay service tax under reverse charges on above both cases and can cenvat taken thereon. (Notification no. 14/2014-ST, dated 11.07.2014) Please clarify. Thanks & Regards

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3 Replies

Nagendra Hegde (Chartered Accountant) (1948 Points)
Replied 23 January 2017

In the first case, since agent being service provider is in J&K, the place of provision is outside taxable territory (Rule 9) and not subject to service tax and hence, no liability under RCM.

In the second case, the place of provision would be service receiver (your) location being in India, place of provision would be in taxable teritorry and subject to service tax under RCM - you could discharge ST liability and avail credit on payment. Ref 30/2012-ST, Rule 4(7) CCR). Pls notein case of training where physical presence are required, then POP would be the location of training.

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Ram kr. (Buisness) (883 Points)
Replied 24 January 2017

Thanks for your valuable reply. I have little bit confusion about Exebition, our exebition held in non taxable territory (outside india). Whether we will be liable to service tax under reverse charge. Thanks