Service tax on foreign Advocate

[Vijay Chitte]

We have appoint a Lawyer in USA for our product disputes in USA, dispute arise out of India, this service can be considered, service received & consume outside India for non taxable? or Rule 3 of POP Apply?

[YAGAY andSUN]

Yes, Rule 3 is applicable in this scenario.

[Vijay Chitte]

If the service is received outside India related to dispute over there, service received / consumed out side India and money is also paid over there, India does not have extra-territorial jurisdiction in tax laws, despite of Rule 3 of POP apply? If Yes, Please explain.

AI Summary

Place of Provision rules determine if foreign legal services attract service tax when received and consumed abroad. Applicability of service tax to foreign legal services hinges on the Place of Provision rules; Rule 3 is asserted to apply to engaging a foreign advocate, while a counterpoint stresses that services received, consumed, and paid for outside India fall beyond India's extraterritorial taxing jurisdiction and questions how Rule 3 operates in such cross-border legal-service situations.