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2018 (11) TMI 844 - AT - Service TaxImport of services or not - reverse charge mechanism - place of provision of services - Banking and Financial Services - commission paid in Brussels by the appellant whose Registered Office is in Hyderabad when the capital was raised by the company in London for use in Mauritius - Held that:- The appellant being a company registered in India, is covered under the scope of Section 66A of Finance Act, 1994. However, the taxable services which are provided from outside India must be received in India for taxation to be applicable under Rule 3. In this case, there is no dispute that the loan was raised outside India and used outside India although the parent company is located in India. Simply because the appellant company is located within India and the transactions which they made globally will also figure in their books of accounts, it would not mean that the services have been received in India. In this case the services were received in Mauritius and rendered in London. Therefore, they clearly do not get covered by Rule 3 of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 even if these transactions are reflected in the books of accounts of the head office in Hyderabad - Any transaction of a company in any of its places of business and commerce will get reflected directly or indirectly in the books of account of the Corporate Office and will effect their overall business result. This does not mean all these transactions are taking place or such services are being received in the location of the Corporate Office. Therefore, no service tax is leviable on the services in question. Appeal allowed - decided in favor of appellant.
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