3. Who is liable to pay tax

In most of the cases, service provider, i.e., person who is providing taxable service is liable to pay service tax and, hence, the IPR holder providing services is liable for service tax. However, in few cases, exceptions have been made and the service receiver is made to liable to pay service tax. IP laws in India permits foreigners to seek registration and acquire the IPR. So if an IPR holder providing service is non-resident and does not have address or place of business in India, service tax is payable by person receiving taxable service in India [Rule 2(1) (d) (iv)]. In such a case, person receiving the service will have to register and pay service tax.