2012 (9) TMI 21 - HC - Service Tax

Taxability of service receiver prior to 18-4-2006 Held that - Provision to tax for the services rendered under the Act did not apply to a person, who was outside the country - amendment was brought in, to tax the service receiver, in case the service provider is outside the country. Therefore prior to 18-4-2006, service receiver should not have been taxed for the services provided by an NRI - in favour of the assessee

Summary

The Karnataka High Court judgment in 2012 clarified that when a service provider outside the country has no fixed establishment in the country, the service rendered inside the country is to be taxed at the hands of the service receiver. Prior to an amendment in 2006, the service receiver was not taxed for services provided by a non-resident individual. The court ruled in favor of the assessee, and the appeal was dismissed.