Service tax on supervision job of group co in India

[Partha Sarkar]

We are a MNC Co.One Customer in Europe placed a Purchase Order to our Spain establishment (like Name ABC-Spain-Group Co).But ABC-Spain is importing that material from India (Bhilai).For making that material our Co (ABC-India-Group Co) delivering supervision service to Bhilai supplier.We will bill to our Group Co ABC-Spain in Euro.Will it attaract service tax or it would be export service (POP).

AI Summary

MNC's Supervisory Services for Export Goods Taxable in India Under 2012 Rules, Not Qualifying as Export Service A multinational company (MNC) in India is providing supervisory services for goods being exported by a supplier in Bhilai to a European customer through its Spain-based group company. The query concerns whether this service attracts service tax or qualifies as an export service. Experts in the forum argue that since the service is performed in India, it is subject to service tax despite the recipient being abroad. The Place of Provision of Services Rules, 2012, and Service Tax Rules, 1994, are cited to clarify that the service does not qualify as an export, thus making it taxable in India.