Service tax applicability - import of services

[Sanjeev Sharma]

A Foreign Software Company organised a Confrence and Training programme in UK for their channel partners / venodrs , for its newely developed software and charged some amount from each participant.This Programme was to understand about the software , how its work and how to market it and for whom this could be beneficial. That Foreign comapny does not carry business of conducting any training programme. Is service tax is payble on this paymment by Indian Company as import of services, if yes under which category.

AI Summary

Foreign Software Company Event in UK Not Subject to Indian Service Tax as Import; Classified as 'Commercial Coaching' A foreign software company conducted a conference and training program in the UK for its channel partners and vendors, charging participants for the event. The program aimed to educate attendees about newly developed software, its functionality, marketing strategies, and potential beneficiaries. The query raised concerns about whether the Indian company should pay service tax on this payment as an import of services. The response clarified that the service falls under 'commercial coaching and training service' and is not considered an import of service since it occurs entirely outside India. However, if classified differently, the Indian company might be liable for service tax.