Charge of Service tax on services received from outside India under Section 66 A of the Finance Act, 1994 and admissibility, or otherwise, of CENVAT credit thereof under CENVAT Credit Rules, 2004 - Regarding

Taxation of imported services: recipient liable for service tax; credit allowed if service used as input for taxable outputs.

Services provided from outside India and received in India are taxed by treating the recipient as the deemed provider for levy purposes; the recipient must register and pay service tax though such services are not treated as output services for CENVAT. Service tax paid under this mechanism is available as CENVAT input credit only where the imported service is used as an input service in the manufacture of final products or in providing taxable output services.