Applicability of service tax on service provided by Foreign solicitor's firm to a Indian public limited company

[Ravindra Gajelli]

Dear Sir,

 

A Switzerland solicitor firm has provided a legal service to Indian public limited company and raised the bill in CHF  which comes to aprox Rs. 5 lacs. 

As a service receiver, whether we have to pay service tax on the said transaction under reverse charge mechanism?

 

Regards

Ravindra Gajelli

[NANDKUMAR SAGWEKAR]

Dear Mr. Ravindra Gajelli

Yes of course , you are importing the services under reverse charge mechanism you have to pay the service tax

 

Thanks

ANAND M SHEMBEKAR

CELL 91-9421187122

AI Summary

Reverse charge mechanism: recipient must pay service tax on legal services imported from foreign firms. The transaction is treated as imported services and the Indian recipient must account for and pay service tax under the reverse charge mechanism, making the recipient, rather than the foreign supplier, liable for the tax on legal services supplied from abroad.