valji (Accounts manager-MBA) (2150 Points)
04 October 2011WE TEST SOME SAMPLE OF MATERIAL OUTSIDE INDIA AS OUR BUYER REQUIRE THIS LABORTORY CERTIFICATE
MATERAIL SEND FROM INDIA BY COURIER
WE DEDUCT TDS & ALSO DEPOSITED SAME UNDER SEC 195
WE RECEIVED SERVICE OUTSIDE INDIA
WHETHER WE PAY SERVICE TAX FOR THE SAME AS IMPORT OF SERVICE
PLEASE REPLY WITH ANY CIRCULARS
Rakesh
(Executive- Commercial & CMA final student)
(179 Points)
Replied 04 October 2011
Service tax is not applicalbe as service rendererd outside India.
U can very well explain to tax authorties that service is performed outside the country.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 04 October 2011
For technical testing and certification service, situs of service recipient is the criteria. Your company is situated in India and hence it amounts import of service.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 04 October 2011
WHETHER SERVICE TAX PAYBALE ON THIS
valji
(Accounts manager-MBA)
(2150 Points)
Replied 04 October 2011
COMPANY WHICH PROVIDE THE SERVICE IS NOT HAVING PERMANEANT EASTABLISHMNT OF INDIA
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 04 October 2011
The provider of sergvice not having PE in India has no relevance. As importer of service you are liable to service tax. But it is cenvatable if the service falls within the scope of input service.
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 05 October 2011
YES,,RIGHT SAID ABOVE...
AGREE.....
valji
(Accounts manager-MBA)
(2150 Points)
Replied 10 October 2011
|
we received service outside india & utilised outside india , material which are send for testing from india
Import of service |
|
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Tax payable by recipient under reverse charge |
In case of import of service, tax is payable by recipient of services under method of ‘reverse charge’. Tax should be paid by cash i.e. GAR-7 challan and then Cenvat credit can be availed of the tax so paid, as it is his input service. |
|
Tax only if service is received in India |
Tax is payable only when service is received in India. Services provided and used outside India cannot be taxed in India. |
|
Conditions to treat a service as ‘import’ |
To determine the issue whether a provision of service is ‘import of service’, services have been classified in three categories. Criteria for each category has been specified e.g. immovable property India, service performed in India, recipient is located in India |
valji
(Accounts manager-MBA)
(2150 Points)
Replied 10 October 2011
only the testing copy of the bill received it doest not mean that service received in india
as per import service rules service tax payable only if service received in india
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 10 October 2011
I think the classification is slightly confusing. If it is classifiable under technical tsting and analysis (65(105)zzh), then situation of the recipient is the test. My answers were based on this asssumption. Whereas for service classifiable under technical inspection and certification (65(105)zzi) , performance is the test. If the subject service is classified under the latter head, it is not import of service as the same is performed out side India.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 October 2011
|
Conditions to treat a service as ‘import’ |
To determine the issue whether a provision of service is ‘import of service’, services have been classified in three categories. Criteria for each category has been specified e.g. immovable property India, service performed in India, recipient is located in India
|
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 October 2011
lab has billed in your name, so you are the service receipent, does not matter for whom you have obtained the certificate.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 10 October 2011
But what for this condition
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Tax only if service is received in India |
Tax is payable only when service is received in India. Services provided and used outside India cannot be taxed in India. |
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 October 2011
| Originally posted by : valji | ||
 |
But what for this condition Tax only if service is received in India Tax is payable only when service is received in India. Services provided and used outside India cannot be taxed in India. |
 |
if the said service is asked by your client directly, certificate issued in his favor directly, and payment made by you ,then ST provisions may not attract,
Here the tests are asked by yourself and certificates are isssued to yourself, that establish the import of services
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 October 2011
There are three services covered under your definition
SCIENTIFIC OR TECHNICAL CONSULTANCY SERVICES 65(105)(za)
TECHNICAL TESTING AND ANALYSIS SERVICES 65(105)(zzh)
TECHNICAL INSPECTION AND CERTIFICATION SERVICES 65(105)(zzi)
========================================================
out of the above services if the service is catagorized in schedule 2 of export of services rule 2006, then only non taxable
the abstract of schedule 2 is here
4.2.6 Categorization of services under rule 3 of Export of Services Rules, 2005 is adopted for the purpose of the Taxation of Services (Provided from outside India and received in India) Rules, 2006.
https://www.servicetax.gov.in/circular/st-circular06/tru06.htm
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