Service tax on import of Service

[Asked by Guest]

Dear Sir,

We have tested one our product from Chaina for "CE" Marking in this transaction we will be liable for Service tax in India under reverse charge mechanism ?

if yes we made payment before 15 Nov 2015 i that which % of service tax applicable.

Regards

Swapneswar Muduli

AI Summary

Reverse charge liability for imported services requires recipient to pay tax on payment date; conversion and interest accrue on delay.
Imported testing services from a non-taxable territory are taxable under the reverse charge mechanism, with the recipient liable to pay tax at the rate prevailing on the payment date. Taxable value for foreign-currency payments must be converted to Indian rupees using the exchange rate on the payment date. Advance payments create an immediate reverse charge point of taxation and require payment in the subsequent month; delayed payment attracts interest. Tax on later instalments is determined by their respective payment dates and may be paid without interest if paid within the prescribed statutory window.