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

Place of provision rules: services performed and enjoyed in India are taxable despite foreign payment.
Services provided in India by a domestic unit to Indian recipients on behalf of an overseas principal are taxable because provider and recipients are located in the taxable territory and enjoyment/performance is in India; payment in foreign exchange to the Indian provider does not make the services exportable, and the taxable value is the amount received by the provider. Input credit for Swachh Bharat Cess is not available.