Service Tax on Service provided out of India, but recd from person located outside India

[Milan Gandhi]

I have following 2 Querries related to Service Tax. Request to please guide in the matter :

1. One of my client who is registered under the category of Business Exh Services. He bills to the Indian client for the exhibition to be held out of India. He charges S T on the invoice and pays to the Dept. Now on the other hand, my client engages the party not having any business establishment in India ( Located out of Indian Territory ) for stall fabrication and pays to him.

Querry : Whether Service Tax is to be paid on RCM for payment to foreign party ?

2. The Service Tax Audit is already completed till 31.03.2015 and at present, S T Audit is under process for 2015-16.

Querry : Whether, Recovery for previous years based on above points can be done or not ?

Reply with relevant notifications solicited ASAP.

AI Summary

Place of Provision of Services: services consumed abroad for events are non taxable in India, payment route irrelevant.
Services for an exhibition held outside India are consumed outside India and fall within Rule 6 of the Place of Provision of Services Rules, 2012, making them non-taxable in India; payment routed through or made to a foreign supplier without an Indian establishment does not change that tax status. Consequently, such procurement for stall fabrication at an overseas event is not subject to reverse charge in India. Recovery of service tax for periods already audited up to 31.03.2015 cannot be pursued by invoking the extended limitation where audit has been completed.