TMI Blogservices of consultant to us based companyX X X X Extracts X X X X X X X X Extracts X X X X ..... Let me make it clear. I am not a Tax practitioner. Considering that I used to work long ago in the Indirect Tax domain, I was asked a service tax query. I thought I could use this platform to assist the queryist. The individual got an offer of being appointed as a Marketing Consultant to a US based company. They would pay him in USD every month and the foreign company does not have any office in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India. Is this Consultant required to pay service tax? My opinion is that since the service recipient is in a non-taxable territory and the consulting fees are received by the provider in USD there cannot be any liability of ST. Informed netizens on this forum may advise me. I found this link also useful http://www.business-standard.com/article/sme/service-tax-not-payable-if-recipient-of-servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce-is-located-abroad-115030901142_1.html Thanks in advance. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = Please confirm whether the service is rendered in India or outside India. If it is performed in India to the person outside India it is payable under reverse charge mechanism. If it is performed outside India and to the person outside India no tax is payable. - Reply By Rajagopalan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ranganathan - The Reply = Sir, According to rule 6A of Service Tax Rules, 1994 The provision of any service provided or agreed to be provided shall be treated as export of service when,- (a) the provider of service is located in the taxable territory , (b) the recipient of service is located outside India, (c) the service is not a service specified in the section 66D of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act (Negative List), (d) the place of provision of the service is outside India, (e) the payment for such service has been received by the provider of service in convertible foreign exchange, and (f) the provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 3] of clause (44) of section 65B of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . is export of service. In your query you have stated that the individual got an offer of being appointed as a Marketing Consultant to a US based company. They would pay him in USD every month and the foreign company does not have any office in India. Therefore it is clearly export of service and no service tax is payable by the individual. Even if the individual provides the service with res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect to India Markets then also it is export of service and hence no service tax is payable. - Reply By Ganeshan Kalyani - The Reply = Sir, if the service recipient is abroad then the service as rendered by the consultant in India amounts to export of service. Hence service tax is not applicable. In case if service is provided to Indian recipient then service provider shall have to pay tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By Akash Deep - The Reply = Dear Sir, you are right, this transaction is not covered under scope of charging section as POP is out side India. i do not know why it is being questioned that whether services are performed or rendered in India as in era of POP rules such question is irrelevant. transaction also qualify as export of service under Rule 6A of STR . As your friend is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot liable to pay service tax he is not required to take registration with service tax department and file return. However, if he want to get refund of input tax under Rule 5 of CCR , which he is eligible, he should get registered with service tax department and file nil return. - services of consultant to us based company - Query Started By: - abhi panic Dated:- 29-9-2016 Service Tax - Got 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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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