Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 560 - AT - Service TaxDemand of Service Tax - Reverse charge mechanism - Section 66A of Finance Act, 2006 - ECB obtained by the respondent from International Finance Corporation Washington, USA - the said corporation does not have any office in India - Held that:- Revenue has not disputed the fact that IFC enjoys immunity from payment of tax. Their only contention is that tax is not being confirmed against IFC but the confirmation is against the assessee, who is located in India - there is no merits in the above contention of the Revenue. Admittedly, the service provider is IFC and the demand relates to the services provided by the said organization located in USA. It is also admitted that the said organization enjoys immunity from payment of service tax. In the ordinary course the tax liability is on the service provider and it is only when the services are obtained from abroad and service provider has no office in India, the tax liability gets shifted to the service recipient, who is required to pay the tax on reverse charge basis. Thus, though there is no obligation on the part of the service recipient to pay the tax but in case service is received from a foreign entity, not having any office in India, the service tax liability gets shifted to the service recipient on reverse charge basis. As such it is not the liability of service recipient but the liability of service provider which gets shifted to the service recipient on deemed basis. In case of no liability of IFC to pay the tax, no liability to pay the same by the service recipient on reverse charge basis would arise. Appeal dismissed - decided against Revenue.
|