Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 481 - CESTAT NEW DELHIExport of services - sale promotion and back office accounting services - whether service tax is liable to be paid by the appellant under the category of business auxiliary service, on reverse charge basis? - Held that: - Service tax is a destination based consumption tax. Even though the activities of sales promotion and back office accounting has been rendered in India, the service is provided to the foreign principal. This is clearly evident from the fact that the benefits of the services provided by the appellant has accrued to the foreign principals of the appellant who has in turn, paid the consideration to the appellant in convertible foreign currency. This has also satisfied the second condition specified in the export of Services Rules. We also note that the CBEC clarification has been issued in the context of situations of the type faced by the appellant in the present case - the activities covered in the present dispute are clearly covered within the Export of Service Rules, 2005. Consequently no service tax will be payable on reverse charge basis - appeal allowed - decided in favor of appellant-assessee.
|