3rd proviso to rule 6(1) of service tax rules 1994

Friends

Any responses please...

Regards

Friends

Any thoughts please.

Regards

Hi Dipjyoti

I am giving this answer from notes made in March 2011, it was a circular in March 2011; I donot have the Circular number.(Circular which came in as Ammendment to POT rules)

Export of services is exempt subject, inter alia, to the condition that the payment should be received in convertible foreign exchange.  Until the payment is received, the provision of service, even if all other conditions are met, would not constitute export.  In order to remove the hardship that will be caused due to accrual method, the point of taxation has been changed to the date of payment.   However, if the payment is not received within the period prescribed by RBI, the point of taxation shall be determined in the absence of this rule. 

Reading the above extract, the service is taxable as per services provided in taxable area.

I am not sure if there is a further ammedment to this, however also donot expect one as it favours revenue.

Hope this answers your question.