TaxTMI 
TaxTMI 
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).
Service tax on supervision job of group co in India
09 Feb 2017 
9 Replies 
1509 Views Asked by
Guest 
Place of provision of service determines taxability; supervision performed in India remains taxable despite foreign billing.
Where supervisory services are physically performed in India on goods made available by the recipient, the place of provision is India and Indian service tax applies even if billed to an overseas group affiliate; export-of-service treatment (and refund under Cenvat rules) is unavailable if the place of provision remains in India, and entitlement to credit or refund depends on utilization, documentary support and whether the exporter/recipient can claim input credits. (AI Summary)
Where supervisory services are physically performed in India on goods made available by the recipient, the place of provision is India and Indian service tax applies even if billed to an overseas group affiliate; export-of-service treatment (and refund under Cenvat rules) is unavailable if the place of provision remains in India, and entitlement to credit or refund depends on utilization, documentary support and whether the exporter/recipient can claim input credits. (AI Summary)