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.

[Rajagopalan Ranganathan]

Sir,

According to Sl. No. 10 of Notification No. 30/2012-ST dated 20.6.2012 as amended, "in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory other than non-assesse online recipient," 100% service tax is payable by the receiver of the service under RCM.

[KASTURI SETHI]

Yes. It is taxable under RCM.

[Himansu Sekhar]

Service recepient has fixed establishment in India. It is taxable under RCM

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of experts.

AI Summary

Reverse Charge Mechanism: recipient must pay service tax on imported exhibition stall rent when supplier is abroad.
Payment of exhibition stall rent to a supplier in a non taxable territory attracts service tax on the Indian recipient under the Reverse Charge Mechanism; the recipient located in the taxable territory (including those with a fixed establishment) must discharge the tax on imported taxable services.