Import of services - services rendered in Germany

[JOSHIL JAIN]

DEAR SIR, ONE OF MY CLIENT XYZ LTD. IS PARTICIPATING IN FAIR IN GERMANY FOR TEXTILES PRODCUTS. FOR THIS PURPOSE IT PAID APROX. RS. 5,00,000.00 AS REMT FOR FAIR STAND. THE SAME WAS PAID IN FOREIGN CURRENCY TO MESSE FRANKFURT . ALL THE SERVICES TO BE RECEIVED BY MY CLIENT IS IN FOREIGN. WHETHER HIS SERVICES ARE TO BE CONSIDERED AS IMPORT OF SERVICES. PLEASE ADVISE.

AI Summary

XYZ Ltd.'s Textile Fair Participation in Germany Not Taxable in India; No Import of Services A client, XYZ Ltd., participated in a textile fair in Germany, paying approximately Rs. 5,00,000 in foreign currency to Messe Frankfurt for the fair stand. The query raised was whether these services should be considered as import of services for tax purposes. Responses indicated that since the services were received and used entirely outside India, they do not qualify as import of services subject to Indian service tax. The consensus was that for services to be taxable in India, at least part of the performance must occur within the country.