Service tax on designing services, Service Tax

[Joshil Jain]

one of our client is receving desiging services related to textile prodcuts in India from a consultant based in USA. Whether Indian party is liable to deposit service tax on such designing services under Import of services.Please advise?

Posts / Replies

[V Ramanujam]

As per Import of service rules, Designing service fall under Rule 3(iii) where recipient of the service in India is liable to pay tax. Thus, in respect of your case, you are liable to pay tax on the designing service received for your textile products in India under reverse charge method.