Applicability of service tax under 66a
visu
(Querist) 10 December 2012
This query is : Resolved
Sir ji.. (panga ho raha hai)
Pl. clarify on remittances in foreign currency; for a service rendered outside India for a contractor in India. The assessee engaged a sub contract outside India and made payment in USD.
To make it here is an eg
"A" have place of business in India, enter into contract with "B" who is having business in India, to execute a repair service at "D" who is client of "A" at outside India,
"D" who does not have business in India.
"B" a sub-contractor of "A", having business in India, engaged another sub-contract "C" outside India to execute the repair service (zzp)to "D" at outside India.
"C" and "D" are located outside India
"A" and "B" are located in India
"B" raised bill to "A" and received INR and made payment to "C" in USD
"A" raised bill to "D" and received payment in USD
what is the liability of "A" and "B" seperately.
a) Is it export service; since the service provided outside India; or
b) Taxable service since the contractor is having place of business in India
Raj Kumar Makkad
(Expert) 11 December 2012
a is the right answer of the question.
