Service rendered in outside india

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Vaibhav (Querist)
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13 April 2015 Dear Experts, We are Indian resident providing service of clearing & forwarding agent and rendered service in abroad for our Indian customer. Can we collect service tax from our customers towards service rendered in outside india .???Please reply with sections in act?

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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13 April 2015 Since the service is provided outside the taxable territory, no Service Tax. Refer sec 65B- definisions.
You will have to pay Service Tax only on the taxable services provided within the Taxable Territory only.

Vaibhav

Vaibhav (Querist)
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13 April 2015 To determine 'Export of Service', should We fulfill the all below conditions or any one of the below.

" Rule 6A of The Service Tax Rules, 1994 provide that a service shall be treated as export if:
a. The provider of the service is located in the taxable territory
b. The recipient of service is located outside India
c. The service is not a service specified in section 66D (Negative list) of the Finance Act, 1994
d. The place of provision of the service is outside India
e. The payment of the service is received by the provider of service in convertible foreign exchange, and
f. The provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 2 of clause (44) of section 65B of the Finance Act. "

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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13 April 2015 Fulfil all of the conditions.

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