2018 (11) TMI 1216

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....appeared to the department that the appellant had received certain services such as Management Consultancy Service etc. from various persons located outside India. It further appeared that expenses shown as "Branch Office Expense" in foreign currency were in relation to providing holiday facilities to their members. Department was of the view that the expenditure incurred by the appellants in respect of the services provided by persons situated outside India and expenditure incurred for their branch office operations are in relation to providing services under the category of 'Club or Association Services'; that these services are intended for the members in India; hence the said services require to be considered as having been performed in....

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....ice as Rs. 4,21,56,951/-. Ld. counsel submits that even after the stay hearing, the matter had been referred to the Commissioner who vide report dated 21.6.2013 confirmed that there is a typographical mistake and that the correct amount is Rs. 42,56,951/-. 2.4 Services rendered by persons located outside India and received are taxable with effect only from 18.4.2006 on enactment of Section 66A of Finance Act, 1994 as settled conclusively by the judgment in Indian National Shipowners Association - 2009 (13) STR 235 (Bom.). 2.5 With regard to branch office expenses, the transaction therein represents transfer of funds towards expenses of branches located outside India to meet its normal business expenditure. Such fund transfer is in acc....

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.... services rendered have accrued only to them for development of business. Hence the impugned services rendered are required to be considered as having been performed in India. 4. Heard both sides. 5. Rule 3 of the Taxation of Service Rules, 2006 lays down the situations where taxable services provided from outside India and received in India will be treated as performed in India and value thereof will become exigible to service tax. Rule 3(i) specifies the list of services provided in relation to immovable property situated in India. Here the service tax on such services will have to be paid under reverse charge mechanism. Rule 3(ii) specifies performance based category services, namely, specified taxable services performed in India; ....