My client is a GTA. They provide services outside India (in Nepal) and receive consideration from the Nepal party in Indian currency. The issue pertains to the period prior to 2012 (when Place of Provision Rules, 2012 did not exist).
Now the case is not covered in export Rules because consideration is not received in convertible foreign exchange. Secondly, Reverse charge is applicable on GTA services, hence the service receiver will be liable to pay service tax. But the service receiver is the Nepal party on which service tax jurisdiction does not apply.
So the question is that who is liable to pay service tax, if any ? and as per which rule/provision ? |