Service tax applicable in out of india

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urmila

urmila (Querist)

13 June 2013 is service tax applicable, if we provide services in out of india .

CA Vikas Acharya

CA Vikas Acharya (Expert)

13 June 2013 nature and type of service to be checked, and then as per POPS,2012 Rules taxability can be decided.
on a very general note it is not taxable but it is not the conclusive solution.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

13 June 2013 Your service need to check with Provision of place of service rules and rule 6A of service tax rule which deals with export of service

as per service tax

As per section 66B of Finance Act, 1994, service tax is payable if service is provided in a taxable territory. Taxable territory broadly means all States and Union territories of India (excluding J&K) plus 200 nautical miles inside the sea from baseline

If you are service are provided out of the taxable territory and satisfying all the conditions under rule 6A of the service tax rule( export of service rule) then your service is exempted from service tax

urmila

urmila (Querist)

14 June 2013 Sir,

we are providing our it services in UK..then is it chargeble or not???

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

14 June 2013 Your service is out of taxable territory only. so if you are fulfill the following conditions as per rule 6A of service tax then your service is exempted

(a) the provider of service is located in the taxable territory
(b) the recipient of service is located outside India(c) the service is not in negative list of services
(d) the place of provision of the service is outside India
(e) the payment for such service has been received by the provider of service in convertible foreign exchange
(f) Service provider and receiver are not merely branches of same person.

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