Exemption of service tax

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 I have a contract with a foreign company to provide business auxillary services namely the expediting of export orders and product development services that are manufactured in an SEZ zone. A monthly invoice is raised and the payment is made via bank transfer as the foreign company has no presence in India. Though I am a registered service tax assessee and collect and deposit service tax and file returns, my reading of service tax exemption rules is that this service should be service tax exempt because the receiver of the service is outside the taxable territory (Rule 5) and more so this should come under export of services.In case my position is legally tenable what mechanism is available to claim the exemption as well as to file for a refund of the service tax already collected and paid?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 April 2015 As per place of provision of service Rules 9, you are providing intermediary service, for which the location of service provider will be considered for payment of service tax.

9. Place of provision of specified services.- The place of provision of following services shall be the location of the service provider:-

(c) Intermediary services;

You are liable for payment of service tax.

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