Service provided by Forein Country in India, Service Tax

[Ramesh M]

Dear Experts,

We have manufacturing unit in Hyderabad, India also we are registered service recipient. We will give outsourcing to German designer to design some of our manufacturing products. He does not have any Branch or registration India. In this case Service Tax is applicable or not if applicable are we eligible cenvat credit as service recipient.

Ramesh M

Posts / Replies

[Pradeep Khatri]

Dear Ramesh,

Please check Rule 3 of the Place of Provisions of Services Rules, 2012 as amended in this regard.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Madhukar N Hiregange]

You are liable as receiver and eligible for credit on payment of ST based on challan.

[Pradeep Khatri]

Respected "Madukar Sir"

Thanks for completing this reply.

Regards

Team YAGAY and SUN