2011 (9) TMI 721 - HC - Service Tax

When the service provider is outside the country who has no fixed establishment or permanent address in the country the service rendered by him inside the country is to be taxed at whose hands - prior to 18-4-2006 service receiver should not have been taxed for the services provided by an NRI - Decided in favor of the assessee

Summary

The High Court of Karnataka ruled that service rendered inside the country by a service provider outside the country with no fixed establishment should not be taxed at the hands of the service receiver. The amendment to Section 66-A of the Finance Act in 2006 clarified this, leading to the dismissal of the appeal in favor of the assessee.