TaxTMI 
TaxTMI 
Whether benefit of cenvat credit in India will allow to the Foreign Firm of CA's?
10 May 2010 
1 Reply 
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Export of services exempts Indian service providers from service tax, so foreign recipients cannot claim cenvat credit in India.
Services supplied by a Delhi chartered accountant firm to overseas CA firms, paid in convertible foreign exchange, are treated as export of services and do not attract service tax in India, so the foreign recipient cannot claim cenvat credit; a foreign CA firm's Indian office paying in Indian currency may be eligible to avail cenvat credit, and the supplier's legal form does not alter this position. (AI Summary)
Services supplied by a Delhi chartered accountant firm to overseas CA firms, paid in convertible foreign exchange, are treated as export of services and do not attract service tax in India, so the foreign recipient cannot claim cenvat credit; a foreign CA firm's Indian office paying in Indian currency may be eligible to avail cenvat credit, and the supplier's legal form does not alter this position. (AI Summary)
A firm of chartered accountant in Delhi provides professionsal services to firm of CA's of USA/UK for there clients in UK/USA and get the fee from those CA firms in convertible foreign exchange. If the CA firm in Delhi, liable to charge service tax or not ? If yes then how the foreign firm of CA's will get the cenvat credit in India? Will it make a difference if a Private Ltd. company provide the same services instead of CA firm?