Export of services

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Guest

Guest (Querist)

08 March 2012 Dear professionals ,

While reading Service tax for CA final I have come across a very strange and silly doubt

I know this may sound stupid to learned professionals but

PLESE CLARIFY

The levy of service tax derives its power from entry 97 of the union list(or entry 92-c in opinion of a few)

Chapter V of the Finance Act ,1994 enumerates the detail

Further Chapter V extends to whole of India except the state of J &K(JURISDICTION)

Thus services provided in J&K and OUT OF INDIA are not covered by the ambit of the charging section( as I was taught the place of providing service is the relevant place for deciding jurisdiction)

So, SERVISES PROVIDED OUT OF INDIA ARE NOT COVERD UNDER THE AMBIT OF THIS LEVY

Then, Why on earth have they framed “EXPORT OF SERVISES RULES” describing about which service is a service exported is understandable but if further talks about rebate and all

How can rebate be provided on serves which is not even livable to tax

Plese Help

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)

08 March 2012 Export of Service is not liable to service tax. Purpose of Rules is to guide on what is treated as service provided outside India. Being there are innumerable services provided, it is difficult interpret sometimes which type of service will be treated as export of service or which will be not. therefore, so as to enhance the understanding of transaction involved, early resolution of disputes and clarification of doubts, export of service rules are framed which are based on three categories viz. location of immovable property, performance of service, location of recipient

Guest

Guest (Querist)

09 March 2012 Thx sir for the clarification sir the Dought arrose becoz i confused sec 93A (rebate) withthe rules

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