Service tax on Design drawing

[Amarnath Amarnath]

Is service tax payable on import of design drawing in physical form and having a bill of entry at Zero duty. If payable under which service as per Finance Act

[CA Rachit Agarwal]

Service Tax is payable for the import of services as per Section 66A of the Chapter V of the Finance Act.

You will be eligible for availing the Cenvat Credit for the service tax paid as per the Cenvat Credit Rules, 2004.

The service would be considered as the Input Service.

[Brijesh Verma]

You are advised to First of all go through Design Services. In case the designs imported by you fall under that service, then the same qualify as Import of Service.

AI Summary

Import of services: design drawings treated as imported service attracting service tax, with Cenvat credit available.
If imported design drawings qualify as design services, they are treated as an import of services liable to service tax despite duty-free clearance; the recipient may claim Cenvat credit for service tax paid, as the service is treated as an input service under the Cenvat Credit Rules, subject to confirming the classification as design services.