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Service tax export and reimport of services and tax liabilit

venkat (manager) (88 Points)

06 August 2013

one of my client X who is registerd for service tax in India has entered into a contract with Y who is not in the taxable teritiory to provide services of inspection etc on need base.Y has asked X to provide services as per the agreement to ABC (who in taxable teritiory i.e in India)Can i treat this as export of serives by X to Y and them import of services by ABC from Y.Who has to pay the serives tax liability X or ABC?

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2 Replies

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 06 August 2013

in the first case it is export of service ,so there is no liability of Service Tax.In the second case both Service Provider and recipient are located under taxable terroteries,so it is not import of service.

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venkat (manager) (88 Points)
Replied 06 August 2013

Thank you for the reply.Sir as the service provider and service receiver i.e X and ABC are in India (taxable terittory) will POPS rules treat is as not export of services??If it is not export then X will have to pay the service tax as provider of services.Kinldy let me know if i am wrong.