K.SARAVANAN (Accounts) (106 Points)
17 July 2009Dear 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...
CA Shilpi Jain
(Indirect taxation)
(155 Points)
Replied 19 July 2009
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...
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 19 July 2009
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