Services received in india

[Asked by Guest]

We are manufacturer of Automobile parts and we plan to expand our manufacturing facility in this regard we are importing machinery from outside Inda and technical services on the macine operating will  be provoded by manufacturer itself. Will it attract service tax in India, if so from whom we can claim the same

Thanks

K Hariharan

AI Summary

Reverse charge on foreign technical services: Indian recipient must pay tax in cash but may claim cenvat credit afterward.
Imported technical or know how services are taxable under the reverse charge mechanism, making the Indian recipient liable to pay service tax (in cash where prescribed). The tax paid under reverse charge is treated as an input service eligible for cenvat credit, but cenvat credit cannot be used to discharge the reverse charge payment; credit may be claimed after cash payment.