Whether notification 30/2012 should read with popr 2012

Queries 574 views 5 replies

Sir, As per Notification 30/2012 if service provider is in non-taxable service and service receiver is in taxable territory. then service receiver is liable to pay service tax.

but as per Notification 28/2012 (Place of provision of service rules) as per Rule 4 of Place of provision of service rules 2012 that in respect of goods that are required to be made physically available by the receipient of service to the provider the service :- location where the services are actually performed.

my question is that whether Notification 30/2012 (for reverse charge) should read with Notification 28/2012 (Place of provision of service rules 2012)

OR  whether in case of Import of Service place of provision of service should be taxable territory.   

Replies (5)

Yes, the service receiver is liable for payment of service tax, if he is cover under taxable territory for the services received from non-taxable territory as a 'person liable for service tax' by virtue of Notification 30/2012.  As per Rule 4 of PPS, place of provision on performance based has to be decided when the services in respect of goods means the service receiver will send the goods to service provider for repair or any other purpose subject to send back the material to him.  In that situation, service provider is liable for servie tax on the basis of porformance.  In case of imported goods for repair or any other purpose, this rule is not applicable and the same will be decided on the basis of Rule 3 of PPS Rules, which place of provision of service will be the location of the recipient service.

Regards,

JMS

But Rule 3 will applicable when other rule will not applicable. so how you can determine place of provision with Rule 3 instead of Rule 4.

Rule 3 is applicable when the business entity location is not traceable. But import services are taxable. You need to get this point in this way.

Regards,

JMS

but in our case we have send good for rapair to non -taxable territory. and rule 4 specifically deal for sending of goods for repair to service provider.

so what is the reason to apply rule 3 instead of rule 4.

if any rule specifically deal to any situaation then why other rule will apply.

 

In such case, you are liable to pay service tax by virtue of notification no.30/2012-ST (B) under cover of person liable to pay service tax.

Regards,

JMS


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