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Service tax to foreign company

Kaushik (General Manager) (78 Points)

17 March 2016

Hi... I am giving cars and buses on rent. I have confirmed buses to foreign based company in April. I am not supposed to charge Service Tax to corporates but this corporate is out of country so how should I charge him. Please advise. Thanks..

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4 Replies

Krovi Trinath (Executive) (24 Points)
Replied 21 March 2016

Dear Mr. Kaushik

First of all you said you are not suppose to charge service tax to corporates. How far it is correct? as per my knowledge you can charge service tax on corporates and in this case your foreign company received your services on taxble territory so you can charge service tax also.

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Kaushik (General Manager) (78 Points)
Replied 21 March 2016

I meant to say that corporates i.e. registered pvt ltd or ltd companies has to pay service tax as a service receiver so i dont charge them

Krovi Trinath (Executive) (24 Points)
Replied 21 March 2016

If service provider is a Proprietorship or Partnership Company and given services to a Pvt. Ltd., company they dont have to charge service tax in their invoice. The service receiver has to pay service tax (abatement 60%) and if service provider is a Pvt. Ltd., company, they have to collect and pay service tax (abatement 60%) if both parties are Pvt. Ltd., or Proprietorship companies service provider has to collect and pay service tax.