Fees paid to foreign institutions having permanent establishment in India is not covered under RCM

Commissioner of GST & Central Excise Vs Vedanta Limited (CESTAT Chennai)

CESTAT Chennai held that tax under Reverse Charge Mechanism (RCM) doesn’t apply to fees paid to foreign institutions for External Commercial borrowing as such financial institutions have permanent establishment in India.

Facts- The issue is whether appellant is liable to pay service tax under ‘Banking and Other Financial Services’ on the fees paid to foreign banks for the External Commercial

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