Service Tax as its name suggests is a tax on services. Service tax in
Export of Service Rules,2005.
Any service, which is taxable under clause (105) of section 65 of the Act, may be exported without payment of service tax. [ Rule 4]. Where any taxable service is exported, rebate of service tax paid on such taxable service or service tax or duty paid on input services or inputs, as the case may be, used in providing such taxable service shall be granted subject to such conditions or limitations and fulfillment of procedure specified in the notification.
What is Export of Service
Services are classified into three types for treating as export [Rule 3 (1)]:
i.Services provided in relation to an immovable property situated outside
ii. Services which are performed outside
iii.Services provided in relation to business or commerce torecipientlocated outside
Only,the broad parameters have been discussed here. Service specific categorization is enlisted at the end of this article.
The provision of any taxable service specified in sub-rule (1) shall be treated as export of service only when the payment for such service is received by the service provider in convertible foreign exchange. [Rule 3 (2)]
Thus a service should be treated as export only if it falls under one of the categories specified under Rule 3(1) and the payment there against is received in convertible foreign exchange.
Classification As per Rule 3(1) of Export of Service Rules.
General Insurance, Architect, Interior Decorator, Real Estate Agent, Commercial or Industrial Construction, Site Formation, Dredging, Survey and Map making, Construction of Complex, Auctioneers, Mining of Minerals, Oil or Gas, Renting of Immovable Property, Works Contract, Mandap Keeper
Stock Broker, Courier, Custom House Agent,Steamer Agent, Clearing & Forwarding,Air Travel Agent, Tour Operator, Rent-a-cab, Security Agency, Credit Rating Agency, Market Research Agency, Underwriter, Photography, Convention Centre, Video Production, Sound Recording, Port Service, Authorised Service Station, Beauty Parlour, Cargo Handling, Dry Cleaner, Event Manager, Fashion Designer, Health Club & Fitness Centre, Storage & Warehousing, Commercial Training or Coaching Erection Commissioning & Installation, Internet Caf Management, Maintenance or Repair, Technical testing & Analysis, Technical Inspection & Certification,
Other Port, Airport Authority, Transport of goods by aircraft, Business Exhibition, Goods Transport Agency, Opinion Poll Outdoor Caterer, Survey & Exploration, Pandal & Shamiana, Travel Agent,
Forward Contract, Cleaning
Club or Association, Packaging, Transport of goods in containers by Rail, Recognized Stock Exchange,
Recognized or Registered Association, Processing and Clearing House
All services specified in clause (105) of section 65 of the Act excluding:
Category II services