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

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.