Payment of service tax on reversed charge method -Reg

[vinay wakde]

We have taken service i.e. Feasibility study from foreign service provider & made payment in USD. According to us the payment made for feasibility study is cover under “consulting Engineering Service”.  Kindly confirm the same for payment of Service Tax on reversed charge method.

Regards,

VINAY

 

 

[YAGAY and SUN]

You would have to pay the service tax under section 66A i.e. under reverse charge mode.

AI Summary

Reverse charge applies to consulting engineering services from foreign providers, requiring the recipient to pay service tax.
Payment for a feasibility study procured from a foreign provider is a consulting engineering service and attracts service tax under the reverse charge mechanism, with the domestic recipient liable to self-assess and remit the tax under section 66A irrespective of payment currency.