Rajesh Poddar (Chartered Accountant) (321 Points)
19 May 2010Dear All
A Client of mine is giving on lease a LCD screen for IIFA awards to be held at Mauritius. Payment will be received in foreign exchange. Invoice will be raised to Overseas company abroad.
Is service tax applicable ?
as per my view it is Export of services and service tax not applicable ? please confirm the same ?
Rajesh Poddar
SFM for CA Final
(Director)
(93 Points)
Replied 19 May 2010
For services where the place of performance of service can be established, it is provided that provision of such services would be ‘export’ if they are performed (or even partly performed) outside India.
In the given case, since the place of performance is outside India, it would amount to export of service..
Regards,
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 21 May 2010
Just hiring out a screen would not be a subject matter of service tax. It may come under supply of tangible goods if the control and possession is with the client himself. If so the fact that the same is being used outside India + CFE payments are recived the same would not be liable for ST
Rajesh Poddar
(Chartered Accountant)
(321 Points)
Replied 21 May 2010
Dear All
Thanks for your replies to my query.
Rajesh Poddar
CAclubindia
