Service tax on cad design export service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2015 Please clarify the following doubt, our company provide Engineering CAD design(Auto CAD Drawing) service to our group company in Japan and money directly received from Japan plant against this service.

and also suggest that our company should be register in Service tax under “Consulting Engineer Service”
(CAD Service provided to Japan base group company from 2009 to March’2015)

My question is:
1. Service Tax applicable or not for the service.
2. Any abatement applicable for that Service.

Mahesh Paryani

Mahesh Paryani (Expert)
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14 March 2015 Specific to your case changeability of service tax is based on 2 factors 1) Service 2) Provided in taxable territory

Your activity is no doubt a service but it fails in provision in taxable territory test.

Your service falls under rule 3 of place of provision of service rules 2012 which states as under

The place of provision of a service shall be the location of the recipient of service.

since the recipient of service is located outside India hence it is not liable to service tax.

and since it is not liable for service tax you are not liable to get yourself registered

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