2024 (10) TMI 895

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rvice received from M/s. Monogram Licensing International Inc.USA when the service provider located in abroad having office in India. 2. Shri G Thangaraj learned Counsel appearing on behalf of the appellant at the outset submits that there is no dispute that the agreement for receiving intellectual property service is between the Monogram Licensing International Inc. and the appellant. However, there is not dispute that the service provider has establishment in India at the address the Millienia, Level 6, Tower B, 1&2 Murphy road, Ulsoor, Bangalore 560008. He submits that even the agreement though made between the appellant and Monogram Licensing International Inc. USA but the same was signed on behalf of the service provider by the Chie....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing International Inc. though located in UAS but at the same time they have their establishment office at Bangalore, in this position, it is necessary to record to Section 66A and Rule 2(1) D4 under which the assessee is require to pay service tax under reverse charge mechanism : - "66A. Charge of service tax on services received from outside India. (1) Where any service specified in clause (105) of section 65 is,- (a) provided or to be provided by a person who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and (b) received by a person (hereinafter referred to as th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed or otherwise legally constituted. (3) The provisions of this section shall not apply with effect from such date as the Central Government may, by notification, appoint." Form the above provision, it is clear that the service recipient is liable to pay service tax only in a case where the service provider located outside India does not have any establishment in India. In the present case admittedly the service provider M/s Monogram Licensing International Inc. has office at Bangalore and the agreement itself has been executed in Bangalore by the signature of Chief Financial Officer of M/s. Monogram Licensing International Inc. Bangalore. In this fact in terms of Section 66 A, the appellant is not liable to pay service tax unde....