Sir,
When Indian company executes the EPC contract outside India through Sub contractor who is also located outside india on back to back basis, what will be implications under Service tax rules?
The payment to Sub contractor is remitted from India in foriegn Currency and the payment from customer is credited to Bank account in India.
Question is here:
1.When indian Company makes the payment to sub contractor who is located outside india , will it attract service tax ?
2. Is indian company liable to be taxed as receiver in india.
Could you please clarify
Regards
N.Balachandran
Service Tax Not Payable for EPC Contract Executed Abroad Under Export of Service Rules, 2005 and 2012 Provisions An Indian company executing an EPC contract outside India through a foreign subcontractor inquires about service tax implications. Payments to the subcontractor are made from India in foreign currency, while customer payments are credited to an Indian bank account. The discussion clarifies that under the Export of Service Rules, 2005, and the Place of Provision of Services Rules, 2012, no service tax is payable if the service provision occurs outside India. Before July 1, 2012, services related to immovable property outside India were not subject to tax under the Taxation of Services Rules, 2006. (AI Summary)
TaxTMI 
TaxTMI 
