Export of service

[Vikas Aggarwal]

Dear Sir,

Please help me in the folllowing issues:

1. One my client provide sugar consultancy services (sugar market condition of india , politicle issue etc)to an international company in london through emails. on continous basis, whether the above service fall under service tax liability.

 My client also assist the company , & if any order received by company through my client the received a coomission on that, whether this was also fall under service tax.

2.  Query regarding work contract:  if any company received AMC service from service provider (service provider is an individual) & material provided by company itself (means service provider charge only for labour work), whether the above case fall under work contract & company liable to pay service tax, if yes than in what amount.

what is the condition if service provider raise seperate bill for material & labour.

 

Regards,

CA Vikas Aggarwal

 

 

[NANDKUMAR SAGWEKAR]

1. For your querry number 1 , please see the place of provision of services rules 2012 .

2. In second the activity does not become works contract , it is purely service , hence SP has to charge the ST @ 12.36% , no issue of reverse charge mechanism.

 ANAND SHEMBEKAR

CELL 9421187122

AI Summary

Works contract classification: labour-only AMC treated as taxable service, supplier must charge service tax without reverse charge.
Reference to the Place of Provision of Services Rules, 2012 is required to determine taxability of cross-border consultancy and related commission; where materials are furnished by the recipient and the provider charges only labour for AMC-type services, the activity is treated as a service (not a works contract), and the service provider must levy service tax without application of reverse charge.