Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 346 - AT - Service TaxImport of services - Payment to the foreign service-providers - On-site jobs services - levy of service tax on reverse charge basis - Held that:- As per the agreement entered into with the related companies of the appellant abroad, they have to render the services for the appellant's clients situated abroad. For such services rendered abroad, VAT/GST liabilities are also discharged abroad at the time of supply of services. If that be so, the question of subjecting same transaction to service tax in India at the hands of the appellant would not arise - the CBEC in a case relating to IT Software Services had clarified that, on-site services rendered abroad would not be treated as services provided from India. In other words, the question of subjecting such transactions under service tax in India would also not arise. This Tribunal in identical circumstances, in the case of Tech Mahindra Ltd., [2013 (4) TMI 104 - CESTAT MUMBAI], had held that, on-site services rendered abroad cannot be considered as exports for the reason that such services are not provided from India. Similarly, in the case of Tata Technologies Ltd., [2012 (4) TMI 196 - CESTAT, MUMBAI], this Tribunal had concluded that such on-site services would not be liable to service tax in India and had accordingly, remanded the matter back to the adjudicating authority for de novo consideration - In the impugned order these issues have not been examined at all by the adjudicating authority. Therefore, we are of the view that the matter has to be remanded back to the adjudicating authority for fresh consideration of all the issues involved i.e. whether the on-site activities undertaken abroad is liable to service in India, especially when VAT/GST liability had been discharged abroad. The appellant is also directed to produce evidences towards discharge of VAT/GST liability on the services rendered abroad - Decided in favour of assessee.
|