reverse chagre on service availed by foreign server company

[Asked by 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.

[YAGAY and SUN]

Dear Kamal,

Please check Rule 3 of the Place of Provision of Services Rules,2012 in this regard.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Place of provision of services determines reverse charge liability for cross-border server company services; review Rule 3 guidance.
Whether payments to a foreign server company for database management are subject to reverse charge when services are supplied from abroad to a recipient located in India and the foreign provider has no permanent establishment; guidance directs consultation of Rule 3 of the Place of Provision of Services Rules, 2012 to determine place of provision and reverse charge applicability.