| Date: |
15-12-2003
|
| Notification No: |
Service Tax Circular No 69/2003 CX(ST)
|
| Issuing Authority: |
Service Tax
|
| Type: |
Circular
|
| File No: |
137/8/2001-CX-4(Pt) |
| Subject: |
Distribution of work amongst various section of CBEC
|
Please refer to Circular No. 661/52/2002-CX Dated 11.09.2002 issued under File No. 137/8/2001-CX-4 on the subject mentioned above.
2. It has been deciced by the Board that the work relating to "Service Tax exemptions under Section 93 of the Finance Act 1994" being handled by the CX-4 Section shall henceforth be handled by the TRU.
3. Receipt of this letter may please be acknowledged.
(Manish Mohan)
Under Secrectary to the Govt. of India. F.No. 137/8/2001-CX-4(Pt)
EXPORT OF SERVICES-DRAFT PROPOSALS
The issue of export of services in the context of service tax has been under consideration of the Government. It may be recalled that before 1-3-2003, all those services for which payment was received in convertible foreign exchange were exempt from service tax vide notification No.6/99-ST dated 9-4-99. Consequent to the withdrawal of this exemption, a circular clarifying certain issues in regard to the export of services and the taxability thereof was issued. As trade and industry has represented that there is certain lack of clarity in the said circular, exemption for services for which payment was received in convertible foreign exchange has been restored vide notification No. 21/2003-ST dated 20-11-2003, as an interim measure.
It has been recognized that unlike the case of goods, in case of services it is difficult to give a precise definition of 'export of services'. Accordingly it has been considered more appropriate to prescribe a set of criteria to decide when a service is deemed to have been exported, keeping in view the nature of the different taxable services. The proposals in this regard are given below. While formulating these proposals, the best international practices have been kept in view. Before taking a final view on this issue, comments and suggestions on the proposals are invited from the trade and industry. These may kindly be sent on or before 25-12-2003 on any of the following e-mail addresses: [email protected], [email protected], [email protected] .
Proposals:
1. Taxable services shall be deemed to have been exported if ,-
(a) for the following services, the service is physically carried out, partly or wholly, outside India:
| 1 |
Clearing & Forwarding agents |
11 |
Dry cleaning services |
| 2 |
Custom House Agents |
12 |
Event management |
| 3 |
Steamer Agents |
13 |
Health Club and Fitness Centres |
| 4 |
Authorised service station for motor vehicles |
14 |
Internet cafÈ |
| 5 |
Beauty Parlours |
15 |
Port services |
| 6 |
Cable Operators |
16 |
Repair and maintenance |
| 7 |
Cargo handling service |
17 |
Security/Detective agency |
| 8 |
Commissioning and installation |
18 |
Storage and warehousing |
| 10 |
Convention service |
19 |
Tour operator |
(b) for the following services which relate to some immoveable property, the said immoveable property is located outside India:
| 1. |
Real estate consultancy |
| 2. |
Architect |
| 3. |
Interior decorators |
| 4. |
Mandap Keepers |
(c) for the following services, the recipient of the service is located outside India:
| 1 |
Stock brokers |
20 |
Manpower Recruitment agency |
| 2 |
General Insurance |
21 |
Market research agency |
| 3 |
Insurance auxiliary service |
22 |
Advertising agency |
| 4 |
Insurance auxiliary services relating to life insurance |
23 |
Chartered Accountant |
| 5 |
Banking and other financial services |
24 |
Company Secretary |
| 6 |
Credit rating agency |
25 |
Cost Accountant |
| 7 |
Underwriting services |
26 |
Management Consultancy |
| 8 |
Business auxiliary service |
27 |
Scientific and technical consultancy |
| 9 |
Franchise service |
28 |
|
| 10 |
Fashion Designers |
29 |
Telephone |
| 11 |
Rent-a-cab operators |
30 |
Telex service |
| 12 |
Photography service |
31 |
Leased circuits |
| 13 |
Sound recording service |
32 |
Pager |
| 14 |
Video tape production service |
33 |
Facsimile service |
| 15 |
Technical inspection and certification |
34 |
On-line information and database access and/or retrieval services |
| 16 |
Technical testing and analysis |
35 |
Broadcasting service |
| 17 |
Air Travel Agent |
36 |
Commercial training and coaching service |
| 18 |
Rail travel agent |
37 |
Consulting engineers |
| 19 |
Telegraph service |
38 |
Courier agency |
Note 1: However, in case of the 38 services mentioned above, if the service is utilized by an individual in his personal capacity during his stay in India, the same shall not be deemed to be export of service.
Note 2: The location of the recipient here means the location of the business establishment to which the service is supplied and in case the recipient is an individual it shall be his permanent address or usual place of residence. Business establishment here shall include branch office/division etc.
2. Service tax shall not be payable on services exported in terms of the criteria mentioned above.
3. The credit of service tax paid on input services used in providing an output service which is exported, will be refunded if it can not be utilized for payment of tax in India.
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