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Service received from foreign

Eswar Reddy S (CFO- at NHTF) (58270 Points)

25 December 2013

Dear Experts , Our client is receiving service from Germany. Foreign company has not charged the service tax in the invoice . Is it necessary to pay the Servicetax by service receiver? How to claim the Service tax paid by the service receiver ? Is there any notification for this ? How to show the service which is receved from foreign in Service tax returns (ST-3)?

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7 Replies

CA. Kuldeep Singhi (Entrepreneur) (424 Points)
Replied 25 December 2013

As per Rule 2(1)(d) of service tax rules reverse charge is applicable in case of import of service & so service tax need to be paid & cenvat credit of ST paid can be taken

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VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 25 December 2013

Agree with kuldeep.Paid by receiver

manoj mudgal (DM) (59 Points)
Replied 25 December 2013

how we adjust service tax if we deposit more or less service tax on import of services. any late payment penalty will be levied on differential amount.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 25 December 2013

1.5% per month interest on late payment And excess paid can be adjusted while making next payment..

Praveen Kumar (Manager - Finance & Accounts) (189 Points)
Replied 25 December 2013

Service Tax paid for import of service should be shown in ST-3 ,as service received in Part B2 For Service Receiver.

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vaibhav jain (student) (24 Points)
Replied 26 December 2013

Agreed with manoj mudgal

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 26 December 2013

As per section 66A of the Finance Act 1994 it is your liability to pay Service tax as recepient of service.you can take credit of the Service Tax paid.In your ST-3 you can opt your liability to tax as the person who is receiver of the Service[in colomn 3.(A2)].