pratik upadhyay (AUDIT COMPLIANCE OFFICER) (469 Points)
16 November 2013Dear All ,
Service provider is in India
Service Recipient is in India
Invoice is raised in India
BUT................Service provided outside india
Whether Service Tax is apllicable ? please quote notification and circular no. with your reply
THANKS
CA. Narottam Kumar Rawat
(Indirect Tax Consultant)
(394 Points)
Replied 16 November 2013
Dear Pratik,
The above services are taxable in India as per Rule 8 of Place of Provision of Service Rules, 2012.
Text is under:
RULE 8. Place of provision of services where provider and recipient are located in taxable territory. — Place of provision of a service, where the location of the provider of service as well as that of the recipient of service is in the taxable territory, shall be the location of the recipient of service.
Hope it is clear.
CA Kanagaraj R
(CA, CS & CWA)
(86 Points)
Replied 16 November 2013
Kindly brief the nature of service rendered to comment on the applicability of service tax.
Bcoz, as per POPS rules', whichever rule appears later is applicable if it falls under more than one category. Therefore, Rule 8 is not the only deciding criteria.
CA. Narottam Kumar Rawat
(Indirect Tax Consultant)
(394 Points)
Replied 16 November 2013
For all services otherthan transportation services POS will always be in India.
later Rule 9: location of the service provider: i.e. In India.
Other later rules only for transportation.
CA Kanagaraj R
(CA, CS & CWA)
(86 Points)
Replied 16 November 2013
I do agree Mr. Narottam. However, let us get the feedback from the person who has posted the query.
pratik upadhyay
(AUDIT COMPLIANCE OFFICER)
(469 Points)
Replied 16 November 2013
CAclubindia
