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Hello Friends, I just want to know whether registration under service tax is mandatory for services provided outside India ? and also whether that service will be taxable or not ?

Replies (1)

As per Section 66B of the Act, only those services that are provided within the taxable territory and are neither under negative list nor exempted via an exemption notification, shall be taxable under Service Tax Law.

Taxable territory = India excluding the State of Jammu & Kashmir;

Whether provided in taxable territory is determined as per ‘Place of Provision of Services Rules, 2012’ (‘PPSR’), wherein there are various rules prescribed for difference types of services.

Based on these services, you may following the following steps –

  1. Whether it is a service as per Section 65B(44)
  2. Whether it is covered under negative list (list of 17 services under Section 66D)’
  3. Whether exempted vide an exemption notification (Mega exemption notification, etc.)
  4. Whether provided in taxable territory (PPSR)

Apply some efforts you would get the answers.

As per Section 66B of the Act, only those services that are provided within the taxable territory and are neither under negative list nor exempted via an exemption notification, shall be taxable under Service Tax Law.

Taxable territory = India excluding the State of Jammu & Kashmir;

Whether provided in taxable territory is determined as per ‘Place of Provision of Services Rules, 2012’ (‘PPSR’), wherein there are various rules prescribed for difference types of services.

Based on these services, you may following the following steps –

  1. Whether it is a service as per Section 65B(44)
  2. Whether it is covered under negative list (list of 17 services under Section 66D)’
  3. Whether exempted vide an exemption notification (Mega exemption notification, etc.)
  4. Whether provided in taxable territory (PPSR)

Apply some efforts you would get the answers.

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