Technical Services - remittances from outside India

[jagadesh kumar bhojanapalli Kumar]

Indian company is providing technical services in India on behalf of foreign company for their customers who procures  their product in india directly from overseas supplier. 

The service provider ( indian company) is receiving tech services charges in USD from overseas company , whether service tax  is attracts or not. 

regards,

bhojanapalli

[YAGAY andSUN]

In this matter, Place of Provision of services is from India which is  a taxable territory, hence, service tax would be applicable and it is irrelevant whether consideration for services is received in Foreign Currency.

Team YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

Place of provision of services determines taxability: services rendered in India attract service tax even if paid in foreign currency. Where an Indian company renders technical services in India for a foreign principal, the place of provision of services is India and constitutes a taxable territory; receipt of payment in foreign currency does not affect service tax liability, so such receipts should be treated as liable to service tax unless a specific exemption applies.