Dear Experts,
We have manufacturing unit in Hyderabad, India also we are registered service recipient. We will give outsourcing to German designer to design some of our manufacturing products. He does not have any Branch or registration India. In this case Service Tax is applicable or not if applicable are we eligible cenvat credit as service recipient.
Ramesh M
Hyderabad manufacturer liable for service tax on outsourced German design, eligible for CENVAT credit per Rule 3 guidance. A manufacturing unit in Hyderabad, India, outsourced design work to a German designer without a branch or registration in India. The query sought clarity on the applicability of service tax and eligibility for CENVAT credit as a service recipient. An expert advised checking Rule 3 of the Place of Provision of Services Rules, 2012. Another expert confirmed that the company is liable for service tax as the receiver and is eligible for credit upon payment. The discussion concluded with an acknowledgment of the provided guidance. (AI Summary)
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