TaxTMI 
TaxTMI 
Dear Experts,
We have done software programing by a foreign engineer in our machine and pay his service chg including travelling expenses. What is the service tax liability on that . Will we liable for service tax on his travelling expenses.
Thanks
SERVICE TAX ON MACHINERY REPAIR
12 Mar 2013 
1 Reply 
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Service tax on foreign technical services applies to gross payments, including associated travel expenses and related remittances.
Service tax liability arises on payments to a foreign engineer for software programming and related services, and the taxable base is the gross amount paid, including ancillary travel expenses; remittance details declared under FEMA Form A2 should be considered when determining the taxable value and compliance obligations for cross-border service payments. (AI Summary)
Service tax liability arises on payments to a foreign engineer for software programming and related services, and the taxable base is the gross amount paid, including ancillary travel expenses; remittance details declared under FEMA Form A2 should be considered when determining the taxable value and compliance obligations for cross-border service payments. (AI Summary)