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Taxability of service imports settled
January, 06th 2009
A recent decision of the Mumbai High Court in Indian National Shipowners Association Vs. Union of India (2008-TIOL-633) appears to have authoritatively resolved a long standing matter of dispute regarding the charge of service tax on import of services into India. The Mumbai High Court has held that taxation of imports of services was legally permissible only after the introduction of Section 66 A of the Finance Act 1994 (the Act) with effect from April 18, 2006, and not for any period prior to that date.
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