reverse chagre on service availed by foreign server company

[Guest]

Dear Sir,

we are online selling and marketing company based in india we use foreign service regarding database management, the services provide by them from abroad in abroad but we service receiver is situated in india. So whther we are liable to service tax under reverse charge on the payment made to them. The foreign companies has no PE in india.

AI Summary

Indian Company Queries Service Tax Liability Under Reverse Charge for Foreign Database Services; Refer Rule 3, 2012 Rules. An online selling and marketing company based in India inquired about their liability for service tax under reverse charge on payments made to a foreign company for database management services. The foreign company operates entirely abroad and has no permanent establishment in India. The response advised the company to refer to Rule 3 of the Place of Provision of Services Rules, 2012, to determine their service tax obligations.