SERVICE TAX ON STALL RENT

[SURYAKANT MITHBAVKAR]

We are manufacturing Pharma Machinery and wish to participate in Exhibition which was conduted in overseas country.

We are making payment of exhibition stall rent in US $.

If this payment is attract to service tax payment under RCM.

AI Summary

Pharma machinery company must pay service tax on overseas exhibition stall rent under Reverse Charge Mechanism, Notification 30/2012-ST. A company manufacturing pharmaceutical machinery inquired about the applicability of service tax on payments for exhibition stall rent made in US dollars for an overseas event. Four responses confirmed that under Reverse Charge Mechanism (RCM), as per Notification No. 30/2012-ST, service tax is applicable. The tax is payable by the service recipient in a taxable territory when services are received from a non-taxable territory. Respondents unanimously agreed that the company, with a fixed establishment in India, is liable to pay the service tax under RCM.