Please interprete the Notification no. 14/2014 on change in the Place of Provision of Services (Amendment) Rules, 2014 in respect of intermediatory service.
One of organisation is paid commission to foreign party for the service of exhibition in outside india on behalf of org. can exemption allowed to organisation under this noti. or in only case of commission for dealing in trading goods only.
If the service provider providing intermediary service (for goods or services) is located outside India and the receiver is in Taxable territory, then Rule 9 of POP Rules gets attracted and the location of the service provider is the place of provision. So, no service tax attracted on such service. As the service provider is acting as an intermediary for facilitating service, there is no effect of the amendment and the service was non taxable even before the amendment.
But sir it's come under RCM, when on person located in a non-taxable territory to a person located in a taxable territory.
RCM is applicable if the service is taxable. Service is taxable if it is provided in taxable territory. Here, as the service is provided by a person located in non taxable territory and the service is deemed to be provided in the location of the service provider due to rule 9 of POP Rules, the service is non taxable and outside the scope of charging section 66B.
thanks sir
R P S K & Associates
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