TaxTMI 
TaxTMI 
X an Indian Company availed services from non resident comapny at project outside india. Would X be liable for payment of service tax as recepient under reverse charge. Please advise.
Thanks,
Sanjiv
Applicability of service tax under reverse charge
17 Jun 2013 
6 Replies 
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Place of Provision of Services determines reverse charge liability; physical possession and recipient location govern taxability for services rendered abroad.
Determination of reverse-charge liability depends on the Place of Provision of Services. If the recipient-location rule applies, the recipient's registered premises, business or fixed establishment, or usual place of residence governs and may create reverse-charge liability. If the service is performance-based-i.e., it requires temporary physical possession or control of goods by the service provider-the place of provision is where the services are actually performed, and services performed outside the taxable territory are not taxable. Services tied to immovable property take the location of that property. (AI Summary)
Determination of reverse-charge liability depends on the Place of Provision of Services. If the recipient-location rule applies, the recipient's registered premises, business or fixed establishment, or usual place of residence governs and may create reverse-charge liability. If the service is performance-based-i.e., it requires temporary physical possession or control of goods by the service provider-the place of provision is where the services are actually performed, and services performed outside the taxable territory are not taxable. Services tied to immovable property take the location of that property. (AI Summary)