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

[sanjeev bajaj]

Case is not clear, give proper facts

(Sanjeev Bajaj)

AI Summary

Service tax liability for services received abroad questioned where foreign JV partner reimburses a portion; clarification sought.
Query concerns whether an Indian company billed for services provided abroad must pay full service tax or only the share corresponding to its cost contribution when a foreign joint-venture partner will reimburse a portion; the sole reply recorded requests additional factual clarification and does not state a definitive tax position.