Services perfomed partly in india

While classfying service the SERVICE ACTIVITY is important and not where it is performed.  The place of performance of service is important for the purpose of leviability of service tax.  It has no impact on the classification...

Can u give some kind of eg. to elorate the SERVICE ACTIVITY Concept???

Furthe for levy purpose i guess we need to classfy i.e. expot of service is exempt and import is taxable.correct??

Please eloborate on the activity performed by the company first. Then I will try to classify the service, Thereafter we will go into export of service/import of service rules etc.

for eg. of Brand edrosment contract(recognised al over world) singend by an Actor for which he

shoot a  ad film in Dubai to be telecasted in INDIA

Shoot a ad film in India to be telecasted in USA

attended 5 parties

3 in INDIA

2in NY.LONDON

the cosidration for all activetes were Rs100( or any sum u like)

the service is PARTLLY perfomed in INDIA

And partly perfomed OUT OF INDIA

how to classify??

(this is just an eg that came to my mind there can be many others like this i guess)

Business promotion is classfied under BAS. I assume the payment to the actor is given in INR so it will attract service tax under BAS.Where the shooting took place is immaterial....

As per my view

You have to first decide whether the service provider is in India or outside India.

If a person in India performing service even if partly outside India, it is export of service.

If a person outside India performing service partly in India, it is import of service.

Sir what if the payment were made in $??will it be export ??(can this be used for tax planing i mean the currncy)

Gnesh sir ,

that is a good intrpretation to the rules but there is no such refrence to the persons residence in the rules

even while teaching the basics when we were tought how to exlude serviceses perfomed in J&K we were told that the place were parties reside is immaterialwill u like to elobrate

As per my view

Referring Export of Service Rules,

Rule 3(2) 

The provision of any taxable service specified in rule 3 (1) shall be treated as export of service when the following conditions are satisfied, namely

a ) such service is provided from India and used outside India; and

b) payment for such service is received by the service provider in convertible foreign exchange.

Rule 3(1) classifies services in 3 categories based on

1.     Situation of immovable property

2.     Place of performance (physical performance)

3.     Location of service recipient

From the above it is clear that inorder to call export of service , such service is to be provided from India .

 ie ,   Services Provided From India in respect of    .   

      A. Services specified in Rule 3(1)(i)

           If immovable property inrespect Of which service provided is Situated  outside India, it is Export of Service*.

    B.  Services specified in Rule 3(1)(ii) 

           If service is fully or partly performed  outside India, it is export of service*

   C. Services specified in Rule 3(1)(iii)

         If service recipient is outside India, it is export of service*.

*Provided  payment of such service is received by the service provider in convertible foreign exchange.