Service rendered to a company in hong kong

Consider the facts - Service provider, i.e., your client, who is located in taxable territory (India) has provided service to a service receiver (Company situated outside Taxable territory, i.e., Hongkong). As per the facts, the service (Technical Consultancy service - Not a service specified in the Negative list, which does not fall under specific clauses of Place of provision of services (POPS) Rules, 2012) is provided at Hongkong.

Hence, as per Rule 3 of POPS rules, place of provision of the service is outside the taxable territory.

Considering the same, if the payment for such service is received by your client in convertible foreign exchange, then all conditions of Rule 6A of Service Tax Rules,  (Enclosed below) are said to be satisfied and the service can be termed as Export of service.

Please revert in case of any clarification.

Export of services.

6A . (1) The provision of any service provided or agreed to be provided shall be treated as export of service when,—

(2) Where any service is exported, the Central Government may, by notification, grant rebate of service tax or duty paid on input services or inputs, as the case may be, used in providing such service and the rebate shall be allowed subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification.]