Foreign Service Provider Exempt from Tax on Services within Country

The High Court of Karnataka held that services provided within the country by a foreign service provider without a fixed establishment should not be taxed for the service receiver. The amendment to Section 66-A of the Finance Act in 2006 supported this position, resulting in the appeal being dismissed in favor of the assessee.

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The High Court of Karnataka ruled that service rendered inside the country by a service provider outside the country with no fixed establishment should not be taxed at the hands of the service receiver. The amendment to Section 66-A of the Finance Act in 2006 clarified this, leading to the dismissal of the appeal in favor of the assessee.

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