Calculation Mechacanism of ST on Import Service

[Partha Sarkar]

Dear Freinds

Can you guide me the calculation mechanism of Service tax & Tds deduction om import service with a exemple.

Best Regards

Partha

AI Summary

Guidance on Service Tax and TDS for Import Services: Pay Service Tax Separately; Refer to DTAA for TDS Deduction. A user inquired about the calculation mechanism for service tax and TDS deduction on import services, seeking guidance with an example. A respondent clarified that the service tax should be based on the consideration paid to the service provider in Indian currency. It was further explained that service tax is payable separately and cannot be deducted from the payment to the service provider, and TDS is not applicable on the service tax portion. For TDS deduction, reference to the Double Taxation Avoidance Agreement (DTAA) was recommended.