2011 (4) TMI 1328 - HC - Service Tax

Levy of service tax - whether service tax is leviable when a foreign company has transferred technology to the Indian Company for valuable consideration? - Held that - Section 66A was inserted in the FA 1994 which came into force from 18-4-2006 foisting such liability on the recipient of the service - appeal dismissed - decided against Revenue.

Summary

The Karnataka High Court dismissed the revenue's appeal challenging a Tribunal order stating that service tax is not applicable when a foreign company transfers technology to an Indian company. The Central Board of Excise and Customs supported this view in a circular dated June 30, 2010. The Tribunal's decision was upheld as the Finance Act, 1994 does not apply to foreign service providers in such cases.