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service tax & tds applicability on import of services

Queries 1608 views 2 replies

Dear Sirs,

 

we have received engineering design consultancy services from X LTD  outside india...that X Ltd having branch office in india.. what is the provision of payment of service tax on import of services and tds on that service...whether we are liable to service tax or not....Kindly clarify...

 

 

Replies (2)

In case u have imported the service then the service receiver (i.e. u) will have to pay the service tax on that transaction. For the purposes of service tax, where an  entity has branches in india and outside they wil be considered as separate entities.  SO In ur case if X Ltd outside india has provided the service then the liability to pay ST is on u.

Tax wil be deducted as per provisions of the IT Act.

we have received engineering design consultancy services from X LTD  outside india...that X Ltd having branch office in india.. what is the provision of payment of service tax on import of services and tds on that service...whether we are liable to service tax or not....Kindly clarify...

 

If you are manufacturing excisable goods or providng taxable servcies you could be admissible for cenvat credit on the same as per the cenbvat credit urles.


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