Service Charges for Overseas Visit

[SURYAKANT MITHBAVKAR]

We had depute our Engineers at our overseas Customer Site on chargeable basis.

While making Service Tax invoice please advise whether service tax applicable or not since Service was rendered at overseas customer site.

The taxability of services or the charge of service tax has been specified in section 66B of the Act. To be a taxable a service should be – provided or agreed to be provided by a person to another in the taxable territory and should not be specified in the negative list.

[Radha Arun]

This will be determined in terms of the Place of Provision Rules 2012, which treats different services differently for the purpose of fixing the place of provision of service. So, we need to know the exact nature of the service.

AI Summary

Place of Provision rules determine whether overseas engineer deputations are taxable under service tax based on service character.
Whether service tax applies to engineers deputed to an overseas customer site depends on whether the supply is treated as made in the taxable territory. Taxability requires the service to be provided or agreed to be provided within the taxable territory and not fall within the statutory negative list. Determination of location for this deputation is governed by the Place of Provision Rules, and the exact nature of the service must be identified to apply the appropriate rule.