Service Tax on Services received at Non-Taxable Terretory

[SNEHAL SHAH]

R/sir,

We have received Services [ EXHIBITION , SEMINAR , ADVERTISING , BROCHURE DESIGN AND PRINTING ] at foreign premises .

Now Company A and Company B have jointly contracted that we are 50 % reimburese this expense ( Joint venture company ) . Company A is Indian compay and Company B is USA company and this 50% Expense will be reimbure company B .

All Bill Raise  on Company A name .

Please advise in this case 100% Service tax payment liabilty on A company or only 50 % Service tax paid becasue 50% Expense will be paid by B ( Foreign - Non-Taxable Tarretory ) company .

Please give your valuable feed back .

With Regards,

SNEHAL SHAH

AI Summary

Service Tax Liability Unclear for Joint Ventures with Foreign Reimbursements; Further Clarification Needed on 50% Reimbursement Rule A query was raised regarding the service tax liability for services such as exhibitions, seminars, advertising, and brochure design received at foreign premises. Company A, based in India, and Company B, based in the USA, are in a joint venture where Company B will reimburse 50% of the expenses. The bills are issued in the name of Company A. The question posed was whether Company A is liable for 100% of the service tax or only 50%, considering the reimbursement by Company B from a non-taxable territory. The reply indicated that the case details were unclear and required further clarification.