Service tax for services delivered in uae and saudi

Hi...

We offer corporate and public training in UAE and Saudi Arab. I have been issuing estimates and invoices without service tax as I usually receive payment in USD via Paypal.

Do I need to collect Service Tax on such training provided in UAE? We go to UAE and conduct the training there.

Appreciate your help.

Replies (2)

Hi Mr. Khan,

Service tax is applicable only if the services are provided in the taxable territory. To determine the place of provision of a service, Place of Provision of Service Rules, 2012 has been notified. As per Rule 6, place of provision of service relating to events is the place where the event is actually held.

Hence, in the instant case as the training event is conducted in UAE, which is in non-taxable territory, service tax is not applicable.

However, if the same are conducted even in taxable territory, then Rule 7 will be applicable. As per which, place of provision of service is in the taxable territory. Hence, service tax is applicable.

Thanks for your reply.

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