Service Tax on Services rendered in Bhutan

[sampath Gopalakrishnan]

If services are rendered in Bhutan, what is the liability under Service Tax act

1) Both the receiver and provider are situated in bhutan

2) Receiver is in bhutan / provider is in India

services related to repair of P&M

 

 

[YAGAY and SUN]

place of provision of services will be applicable in this scenario.

AI Summary

Place of provision determines service tax liability for cross-border repair services and Indian tax applicability.
Service tax liability for repair services to plant and machinery turns on the place of provision of services; where parties are in Bhutan or cross-border, whether Indian service tax applies depends on whether the place of provision is within the taxing jurisdiction.