TMI BlogService tax on Overseas contract-regX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, When Indian company executes the EPC contract outside India through Sub contractor who is also located outside india on back to back basis, what will be implications under Service tax rules? The payment to Sub contractor is remitted from India in foriegn Currency and the payment from customer is credited to Bank account in India. Question is here: 1.When indian Company makes the payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to sub contractor who is located outside india , will it attract service tax ? 2. Is indian company liable to be taxed as receiver in india. Could you please clarify Regards N.Balachandran - Reply By UTTAM DATTA CHAUDHURI - The Reply = 3.1 Export of Service Rules, 2005 ( Notification no. 09/2005-ST) The provision of any taxable service specified in sub-rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (1) shall be treated as export of service when the following conditions are satisfied, namely:- such service is provided from India and used outside India ; and payment for such service provided outside India is received by the service provider in convertible foreign exchange Rule 6A - Export of services: 1) The provision of any service provided o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r agreed to be provided shall be treated as export of service when- a. The provider of service is located in the taxable territory, b. The recipient of service is located outside India , c. The service is not a service specified in the section 66D of the Act, d. The place of provision of the service is outside India , e. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payment for such service has been received by the provider of service in convertible foreign exchange , and f. The provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 2 of clause (44) of section 65B of the Act In the new regime of service tax effective from 01.07.12, no service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is payable when the services are rendered / provided outside the taxable territory. Taxable territory for that purpose has been defined to include the territory of India. Accordingly, no service tax is payable at all if the place of provision of service is outside India. To determine the place of provision of service, Place of Provision of Services Rules, 2012 have been notified vide notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication 28/2012-ST dated 20.06.12. In terms of such Rules , since the place of provision of service is outside India, no service tax is payable at all in our considered view - Reply By N Balachandran - The Reply = Thanks for ur clarification and what is status prior to 1.07.0212, incase we execute the Overseas construction contract through sub contractor who is located outside india. Are we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to pay the service tax in India since we are making payment to Subcontractors from India ( Which may be called as import of Service ). Kindly clarify Regards N.Balachandran - Reply By JAMES PG - The Reply = Before 1.07.12, as per the provisions of Taxation of Services (Provided from outside India and received in India) Rules,2006 , no tax liability for payment of services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... related to immovable property situated outside India - Reply By Vijay Chitte - The Reply = Since place of provision of service is outside India, No service tax - see rule 4 of Place of Provision of Service Rules . - Service tax on Overseas contract-reg - Query Started By: - N Balachandran Dated:- 8-11-2012 Service Tax - Got 4 Replies - Service Tax - Discussion Forum - Knowledge Sharing, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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