Dear Sir,
We are a India based company and having manpower supply business ( turnover more than 10 lacs). we are fighting a legal case regarding manpower issue in Oman (Out side india) with the help of an advocate in oman. We are paying legal fees to advocate around 1 Crore p.a.. Whether i need to pay service tax on the same in India.
Manpower Firm Debates Service Tax Liability in India for Legal Fees Paid Abroad Under POPOS Rules 2012 An India-based company involved in manpower supply is paying legal fees to an advocate in Oman for a legal case and inquires about the applicability of service tax in India. One respondent argues that under the Place of Provision of Services (POPOS) Rules, 2012, the service is considered provided in India, making the company liable for service tax. Another respondent disagrees, stating that since the service is rendered outside India, the reverse charge mechanism does not apply. The debate centers on whether the location of the service receiver or the service provider determines tax liability. (AI Summary)