Here is an opinion on Service tax. I am quite confused. Could someone throw more light on the subject? What exactly is the right interpretation?
“Services to foreign organisations may not be chargeable to service tax in some cases. To understand this, let’s take an example.
A foreign entity has retained you to provide advisory services in India. You visit and advise their grantees / partners in India, and report back to the client. The foreign entity does not have an office in India. Therefore, your contract is signed with the main office. Your fees also come from abroad. Will this be chargeable to service tax?
No. In most cases, service tax is now charged based on location of the receiver of services. In this case, the receiver is located abroad. Therefore, this service is not taxable. It does not matter that the service is actually performed in India.”
Would be grateful for a response and guidance
Joe D’Souza