Service tax on serivce used in china

[VIJAY GUPTA]

One of my client is importing some material from China which requires some testing certifications. For these certifications our foreign supplier arrange testing agency which took material samples from supplier's premises & perform testing & again after testing submit tested material alongwith certificate of tested material with our China supplier.

But bill is raised by testing agency in our name (in USD currency) not in the name of foreign supplier who arrange that agency.

Now, my query is relating to Service Tax, whether the same would be applicable, as service provided and service rendered both are in non-taxable territory.

Please give \your valuable opinion.

Thanks

AI Summary

Service Tax Not Applicable for Foreign Testing Services Under Place of Provision of Service Rules 2012 A client is importing materials from China that require testing certifications. The testing is conducted by an agency arranged by the foreign supplier, but the billing is directed to the client in USD. The query is whether service tax applies, given that the service is provided and rendered outside India. Three experts responded, confirming that service tax is not applicable as per the Place of Provision of Service Rules 2012, since the services are performed outside India.