Ser.Tax - Input Credit on Machinery Hire Chg.-to Import Vend

pashya1972

Hi,

I wud like to ve ur opinion/solution for given below situation. - NAV 4.0 SP3

Service tax needs to be paid on "Machinery Hire Charges" to vendor located in US.
As per rules service tax has to be paid first and u can avail "service tax credit" of that payment.
Nav does not provide for handling such situation wherein there will be no Service tax charged by the import Vendor.
There will be no service tax charged in the Vendor Invoice since he is located outside India.
However liability has to be discharged in India.

Let me ve ur expert opinion.

Pash

ssingla

AFAIK There is no functionality available in NAV IN version to fulfil this requirement.