NO IT WILL BE NOT TAXABLE. BECAUSE IMPORT PAY TAXES AS HE IS PROVIDING THAT SERVICE IN INDIA. AS SERVICE IS EXEMPT,HE IS NOT LIABLE TO PAY TAX AS IMPORTER.

Health Care Service is exempt but if you receive any non exempt service as an input for your exempt service, the same is not exempted. As far as cross border services is concerned, all services whether exempt or not if received by a receiver in taxable territory (India other than J&K) from a provider in non-taxable territory (J&K and outside India) and if it is used in your business (even of providing negative list services) you have to pay tax on reverse charge mechanism.

If you read Section 66B first then exempt service received from out of India or J&K should not be taxable. If you read Section 68(2) reverse charge mechanism is applicable when taxable service is received from abroad and that is also stated in notification 30/2012

However, ther is a notification 15/2012 that is apparently not rescinded that is silent about whether the service is taxable or not and brings all services availed outside under the tax net. Usually the later notification should supercede the earlier ones.

in notification 30/12 ,it is clearly stated in the head 'taxable service" .so notification is for taxable service not for exempt service. so on importation of exempt service  tax is not payable.

Yes Tarannum. On importation of exempt service no service tax is payable. BUT, on importation of taxable service, Service Tax is payble by receiver even if the service he provides is not taxable. This means if for export of service you receive an input from abroad, you can pay tax and then claim refund if you satisy ALL the conditions for export of the service. However, if you provide exempt service in taxable territory you have to pay on import of taxable service and you cannot claim refund for it.

Hi Guys,

My Name is Ghanshyam,

Please Can anybody help me out on this issue?

There is an entity which has partneship with NSDC(a govt. undertaking). It means its services are exempted.

The entity has availed certain Vehicle Hiring Services from a non-company. Will these services attract service tax to the service recepient (the entity) under reverse charge mecahnism?

If Yes, then is there any abatement available?

Regards,

Ghanshyam