TMI BlogService tax on import of ServiceX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, We have tested one our product from Chaina for CE Marking in this transaction we will be liable for Service tax in India under reverse charge mechanism ? if yes we made payment before 15 Nov 2015 i that which % of service tax applicable. Regards Swapneswar Muduli - Reply By Ganeshan Kalyani - The Reply = As per Notification no 30/2012 as amended if the service provided by a per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son in a non-taxable territory and the service recipient is located in taxable territory then the recipient has to pay service tax @100% under reverse charge mechanism. Further the point of taxation for the service recipient to pay service tax under reverse charge is the date of payment to the service provider. In your case you have made the payment before the change in tax rate I.e. before the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... troduction of Swachh Bharat Cess and hence the rate of tax in your case is 14%. - Reply By Swapneswar muduli - The Reply = Dear kalyani Sir, Thanks for your replay One more thing i want to know this invoice we made payment in two installment 1st we paid 40% advance in Sept-2015 and rest 60% we paid after availed the service that is in Nov-2015. In that case we paid these two installment with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two different Exchange rate so on which amount we consider for calculation the service tax liability under reverse charge mechanism . Still now we are not paid the service tax in this Nov-2015 we will make payment under so is there any interest arise in this transaction as 40% advance already paid in Sep-2015. Regards Swapneswar Muduli - Reply By Ganeshan Kalyani - The Reply = There is no doub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that service tax shall be paid on the Indian currency I.e. foreign currency converter in Indian rupees. Further the point of taxation for the person required to pay service tax under reverse charge is the date of payment to the service provider. Since you had paid advance to service provider in the month of September the liability for service tax had arised in September and should have been paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in October. Now it should be paid along with interest. Further the tax liability on balance payment to service provider made in November can be paid without interest by 5/6 th of December. - Reply By KASTURI SETHI - The Reply = Beautifully explained by Sh.Ganeshan Kalyani, Sir. - Reply By Ganeshan Kalyani - The Reply = Thank you Kasturi sir for your appreciation.It boosts me to contribute more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and more by sharing my views/reply. - Service tax on import of Service - Query Started By: - Swapneswar muduli Dated:- 16-11-2015 Service Tax - Got 5 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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