Service Tax on Off. Rent

[P Ovhal]

If any company was paid rent an office situated in abroad. and this transaction reflect on GR Vaiver & Balance Sheet,

In this case Service Tax is Applicable?

[CA Rachit Agarwal]

No service tax will be applicable.

Services are rendered and received outside India.

If the services are received in India, then only the person receiving the services are subject ot service tax at the rates applicable.

AI Summary

Service tax on cross-border rent: no levy where services are both rendered and received outside India. Where the rented office and the provision of rental services are located outside India, the transaction is treated as services rendered and received outside India and service tax does not apply; if services are received in India, the recipient would be liable to pay service tax at the applicable rates.