service on Professional services in India on behalf of overseas Client

[jagadesh kumar bhojanapalli Kumar]

Dear Sir,

A Unit is having a Factory & HO. The Factory has been registered under Central Excise . The HO team of marketing & technical operators is providing services in India on behalf of 'X' (who is a overseas supplier ) to B & C Indian customers.

A Unit is getting foreign currency towards professional charges from over seas client i.e., 'X' . Is this service income is attracts service tax or not. A unit is having service credit can we adjust/set off this credit ?

Swatch Bharat Cess can avail input tax credit or not ?

Please confirm

thanks & regards,

jagadesh kumar

AI Summary

Service Tax Applies on Foreign Currency Payments to Indian Service Providers; No Swachh Bharat Cess Credit Allowed. A unit in India provides services to Indian customers B and C on behalf of an overseas client, X, and receives payment in foreign currency. The query revolves around whether this service income is subject to service tax and if Swachh Bharat Cess input tax credit can be availed. Responses clarify that the services are taxable since both service provider and recipients are in a taxable territory, despite payment being received from abroad. The amount received from X is considered the taxable value, and Swachh Bharat Cess credit cannot be claimed. Legal opinions confirm the tax liability.