TaxTMI 
TaxTMI 
Reverse Charge
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....everse Charge<br> Query (Issue) Started By: - shruti mittal Dated:- 20-1-2012 Last Reply Date:- 8-2-2012 Service Tax<br>Got 5 Replies<br>Service Tax<br>Suggest me steps which i should have been taken while deciding the applicability of service tax payable on imported services. Reply By Joginder Pal: The Reply: In general, it is the service provider that is responsible to collect, deposit the ser....
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....vice tax and follow the relevent law & procedure . But in the cases where service provider is based abroad, the responsibility of fulfilling all obligations of discharge of service tax has been transferred to the service receiver in terms of Section 66A of Finance Act, 1994, The basic ingredients of applicability of Section 66A is as follow: - 1) Service provider should be based abroad, 2) Serv....
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....ice recipient should be based in India (including the companies registered in India), 3) Services should be received in India as Service Tax is destination based tax. Hence once one avails the services covered under the service tax act from the service provider based abroad, the service receiver becomes the service provider and is required to folow all provisions including registration, payment ....
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....and submission of periodical returns as per the Finance Act, and the rules made thereunder. Reply By sv bhasker: The Reply: Please see three categories of services under the provisions of Taxation of Services(Provided from Outside India and Received in India) Rules,2006 read with Section 66A of Finance Act, 1994 and decide on the taxabilty. Reply By shruti mittal: The Reply: Thank You!! Repl....
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....y By Priyanka Goyal: The Reply: Also see Rule 7 of service tax valuation rules 2006 wherein stated that where a taxable service is only partly performed in india then the value of taxable service shall be the total consideration paid by the receipient for such services including the value of service partly performed outside india. Reply By Naveed S: The Reply: Please also keep the following poi....
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....nts in mind while deciding the applicability of service tax payable on imported services, espeically the second point :- I) The recipient of service shall be liable to pay tax if the provider of service do not have any established business or a fixed establishment in India. II) However, a person carrying on a business through a branch or agency in any country shall be treated as having a busines....
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....s establishment in that country (including India).<br> Discussion Forum - Knowledge Sharing ....