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2018 (11) TMI 227 - AT - Service TaxLiability of service tax - payments made to foreign associates for services procured from them - reverse charge mechanism - Revenue was of the opinion that the respondent has received various services from persons situated outside India - Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 read with Rule 2(1)(d)(iv) of the said Rules. Held that:- The Finance Act, 1994 was amended to include the provision of Section 66A specifically providing for such a scenario - the service tax liability on taxable services provided by a person located outside India to a recipient in India would arise only w.e.f. 18.04.2006 i.e. the date of enactment of Section 66A ibid - there is no infirmity in the order passed by the lower authority in dropping the demand for service tax up to 17.04.2006. Service rendered during the period 18.04.2006 to 31.03.2007 - Held that:- Sub-rule 3(i) & 3(ii) does not appear to have any application in relations to services in dispute. But it is required to be examined whether the services rendered by the foreign associates during the period would qualify under sub-rule 3(iii). It needs to be determined whether respondent is the recipient of such services though there is no dispute that such services have been rendered abroad and the payments for such services have been made by the respondent to the foreign service providers. The matter is required to be remitted back to the adjudicating authority for redetermination of the demand - appeal allowed by way of remand.
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