Bpo services

himani sharma (Student CA Final ) (27 Points)

09 May 2014  

suppose a foreign company is outsourcing its work through soft copies and company situated on india does the work given by the company and sent it to the foreign company through soft copies.

in this case what is the place of provision?

as per rule 9 of place of provision rule" Online information and database access or retrieval services" place of provision will be the place of service provider. so as per this rule indian company is taxable.

but

on the other hand Export of service (Rule 6A of ST Rules)

Any service provided or agreed to be provided shall be treated as export of service when,-

(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 a service specified in the section 66D of the Act,

(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, 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 Act

under point d) condition is mentioned that  the place of provision of the service is outside India then such exemption is to be availed..

what place should be taken as place of provision ?????????????????????????????????????

and liable to service tax at which place?????????