I want to know the aplicability of service tax on services ( exhibition stall arrangement) rendered by an India company ( provider of service) , but the services are rendered in a foreign country. The service recepient is also an India company. The service provider raises the invoice in Indian rupees.
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Service tax on service rendered outside india
Replies (2)
It seems that you are providing event management services, hence you are covered by Rule 6 of the Place of Provision of Services Rules, 2012. Hence, the place of event determines the taxability.
In this case, since the event took place outside India, service tax can not be levied.
Further, if you want to claim rebate then it is mandatory that you receive the money in Convertible Foreign Currency and receiver and provider are not the branch of each other. (Rule 6A of the Service Tax Rules, 1994)
Just a second Mr. Vishwanathan...
I beg your pardon;
I didn't notice that the service recipient is also in India.
In such case, the Rule 8 will supersede Rule 6 and the location of service recipient would be the place of provision and the same will be taxable.
I am extremely sorry of the inconvinience caused.
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