https://www.taxtmi.com/caselaws?id=365088 The Tribunal upheld the decision of the Commissioner (Appeals) setting aside the service tax demand against the respondent related to External Commercial Borrowings (ECB) from International Finance Corporation (IFC), Washington, USA. It was held that IFC's immunity from taxation in India exempts the assessee from service tax liability. The Tribunal clarified that when the service provider is exempt from taxes in India, the liability for service tax on the recipient does not arise under the reverse charge mechanism. The judgment emphasized that the reverse charge mechanism applies only when services are received from a foreign entity without an office in India. en-us Thu, 02 Aug 2018 00:00:00 +0530 Thu, 07 Feb 2019 15:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=365088 The Tribunal upheld the decision of the Commissioner (Appeals) setting aside the service tax demand against the respondent related to External Commercial Borrowings (ECB) from International Finance Corporation (IFC), Washington, USA. It was held that IFC's immunity from taxation in India exempts the assessee from service tax liability. The Tribunal clarified that when the service provider is exempt from taxes in India, the liability for service tax on the recipient does not arise under the reverse charge mechanism. The judgment emphasized that the reverse charge mechanism applies only when services are received from a foreign entity without an office in India. Case-Laws Service Tax Thu, 02 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=365088