Services performed outside India

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My query is that if a resident co. provides services to another resident co. outside India , is it Liable to Service Tax?

Here one leg of the whole service is performed outside India and other performed  in India and the charges for both the parts are billed separately in the same invoice?

If anyone can pls also quote the relevant section/provision/judjement , that will be highly appreciated.

Thanks in Advance

Replies (4)

Boss in my view referring to provisions of Rule 3 of export of service rules, the services which sre provided by the company in India to a resident company alone is taxable to service tax and, the service which is provided outside india shall be regarded as export services ,

it is irrelevant regarding the status of the Resident company , because the service was received was outside india.... , though it is provided by an indian company.....

bhargava

 

bt this is not the case of export of services as the mandatory condition of payment to be received in foreign exchange is not being fulfilled here.

ok boss then not refering to rules......if we go for strict interpretation...

'the services which are provided in India are only taxable"...this is the provision of the act....

then it is irrelevant whether the entity is a Resident or non resident and whether the receipt for the service is received in India or out of india ., or foreign exchange or indian currency....

3 different critereon depending on type of service

a. location of immovable property

b. performance of service

c. location of recepeint

+ receipt on CFE.

Once service is classified the liability could be fixed./ export confirmed

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