Applicability and credit of service tax

[KANTI CHAUHAN]

Dear Sir, We are dealing in all types of IT related services.Recenty our staff has got training from Australian based company for which they charged us US$ 30000.Are we liable to pay service tax & if yes can we get credit of the service tax paid since its related to our business. Whether we have to deduct any TDS while making any foreign outward remmitance & at what rate.

AI Summary

IT Firm Seeks Clarity on Service Tax for Overseas Training; Possible Cenvat Credit and TDS Implications Examined A company in the IT sector inquired about the applicability of service tax on training services received from an Australian company costing US$ 30,000. The response clarified that if the training is classified as commercial coaching wholly provided outside India, it is not taxable in India. However, if considered as consulting engineering services, it is taxable as the recipient is in India. The service tax paid could qualify for Cenvat Credit if conditions are met. Regarding income tax, it appears TDS may not be required, but further analysis is needed concerning the transaction and relevant tax provisions.