Service tax on designing services

[JOSHIL JAIN]

one of our client is receving desiging services related to textile prodcuts in India from a consultant based in USA. Whether Indian party is liable to deposit service tax on such designing services under Import of services.Please advise?

[Guest]

As per Import of service rules, Designing service fall under Rule 3(iii) where recipient of the service in India is liable to pay tax. Thus, in respect of your case, you are liable to pay tax on the designing service received for your textile products in India under reverse charge method.

AI Summary

Indian Client Must Pay Service Tax on Imported Design Services from USA Under Rule 3(iii) Reverse Charge Mechanism A client in India is receiving designing services for textile products from a consultant based in the USA. The query is whether the Indian party is liable to pay service tax on these imported services. The response clarifies that, according to the Import of Service Rules, designing services fall under Rule 3(iii), making the Indian recipient responsible for paying the service tax under the reverse charge mechanism.