service tax on foregin contractor having establishment in India

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  1. k sreeenu

    k sreeenu New Member

    Dear Sir,

    We are having an query on import of services: ( We are the company of OIL & GAS Exploration , the contractor is foreign origin and doing well services in India , the foreign entity is having a permanent establishment in India having PAN & SERVICES TAX REG.,, Now the Invoices is raised by the local office along with the services tax amount but the amount is paid in USD and Remitted outside the India.

    Query is whether the services tax amount is to paid to the party since they are having service tax registration in India. or to be recover by us has a services receiver under reverse charge mechanism and deposit the same to the service tax department.

    It will kind enough on your part to clarify on this subject

  2. k sreeenu

    k sreeenu New Member

  3. Since the service provider is located in the taxable territory, India, the service receiver is not liable to collect tax under reverse charge mechanism. You can pay the service tax charged in the Invoice to the party.
    k sreeenu likes this.
  4. k sreeenu

    k sreeenu New Member

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