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foreign service provider can raise bill in Indian rupees?

Service Tax - Started By: - Yatin Bhopi - Dated:- 3-2-2016 Last Replied Date:- 8-2-2016 - Dear experts,We are going to receive On-Site Methodology and Software Training in India by Foreign Service provider. They are going to raise bill in Indian Rupees. As a recipient of service we are going to pay service tax under reverse charge.My query is Is there any compulsion to raise bills in freely convertible currency(USD/EURO) if billed from outside India. Under Commercial training or coaching service .....

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category of erstwhile Commercial Training or Coaching Services specified under Section 65 (105)(zzc). Registration Certificate is required to be amended. - Reply By YAGAY AND SUN - The Reply = Under the Place of Service Rules there is no compulsion to raise invoice in FCC. But there is no mention about this aspect in the Master Directions issued by RBI in RBI/FED/2015-16/12 FED Master Direction No. 17/2015-16 January 1, 2016.Further classification of services has no relevance in the Negative Lis .....

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t of service tax. - Reply By KASTURI SETHI - The Reply = I fully agree with the views of Sh.Ganeshan Kalyani, Sir. I also agree with the views of M/s.YAGAY AND SUN, Sirs, but with one exception. With due honour to M/S.YAGAY AND SUN, I take the liberty to express my views as under:-:- 1. Even after 1.7.12, proper classification of services is very crucial inasmuch as some services are eligible for abatement, some have been specified under RCM and even in Place of Provision Services Rules, 2012 so .....

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rtance is still there. Thanks. - Reply By KASTURI SETHI - The Reply = Dear Sh. Ganeshan Kalyani, Whether it is Central Excise or Service Tax, mis-classification of goods or service can cause monetary loss to the assessee and the Govt. - Reply By Ganeshan Kalyani - The Reply = I am in agreement with the views shared by you. - Reply By Mahir S - The Reply = You are Liable to Pay service tax And its mandatory to charge Service tax in billed Amt.The billing currency amt. can be raised in foreign cur .....

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r not. No doubt provision of taxable service by any person located in non- taxable territory to a person in taxable territory is covered under Notification No. 30/2012 and subject matter of reverse charge mechanism casting 100% liability on service recipient. As you have not provided whether the service provider is a company or an individual i would assume that it is a company. As you have stated that they are willing to raise bill in Indian currency, i would further assume that service provider .....

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ce receiver located in taxable territory (import off service) would be taxable if place of provision of service is within taxable territory. In case of service received by you (i.e. coaching service) place of provisions of such service is to be determined as per Rule 4(b) of the POP Rules. service of coaching (nothing but a session of knowledge imparting with instruction of putting that knowledge in practice) requires physical presence of the service receiver or the individual acting on behalf o .....

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ransaction location of service receiver is not in dispute. Phrase location of service provider has been defined under Rule 2(h) of POP. (a) of 2(h) provides that where service provider has taken service tax registration single or centralised, the premises for which such registration has been obtained shall be the location of service provider. Now in your case if the service provider is a foreign company there are chances that it may have its own branch in India and such branch may have its regis .....

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l location of service provider. if such business establishment or fixed establishment are located on taxable territory, again this transaction would not amount to import of services, meaning you have no liability to pay service tax under reverse charge. Term business establishment or fixed establishment is not defied under service tax law and are of wide amplitude. i am not taking the definitions provided in education guide as it has no statutory force but even there it can be seen that terms ar .....

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our registration certificate. the fact that they are more willing to raise bill in Indian currency gives my doubt more weight that they may have an establishment which may qualify as a business establishment or fixed establishment in India. if ultimately if comes out that service provider is located in non-taxable territory, you need to pay service tax under reverse charge mechanism and amend your registration certificate also. There is no compulsion that a foreign service provider must raise bi .....

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