Exporters Of services can sigh in relief to determine that it is not required to comply with 6A from the list of services provided for tax under notification 36/2012 service tax because it looks inappropriate!
But the benefits that accrue to them on account of exports seems to be in danger!
Determines the shipping department (Article 66 b) of the Amended Finance Act for 2012 that "there must be taxed (hereinafter referred to as the ST) at a rate of 14.5 per cent of the value of all the services, other than those specified in the negative list of services, provided or agreed to be provided in the taxable territory by one person to another, which have been collected in a way that may be prescribed.
"as understood from the foregoing, the main components of the tax service to be imposed are -
1 must meet the definition of" service "as It was included in the Finance Act 2012. 2. should not be listed in the "services negative list" defined under section 65D of the Finance Act 1994 3. should provide services or agreed to be provided in the taxable territory by one person to Another.
By emphasizing the phrase "provided or agreed to be provided in the taxable land", implicitly, if not in the service providing taxable land then is the same outside ServiceTax scale.
When the provision of services within India except J & K, where both the service provider and the service recipient in India are located, there is no difficulty in determining "taxable land" because it would be India,
but in certain cases rather than provide has been Service rules defined in 2012. " India "under section 65B.
Difficulty only arises when the service or the recipient outside India provider or in J & K. located until June 30, 2012,
and the issue of submission of tax service in such cases (taxable land report in a way) through the export of service rules in 2005 directed and services (provided from outside India and received in India) 2006.
the rules now been replaced by two groups above rules with a set of rules called instead of providing 2012 service rules by the media NO.28 / 2012 dated June 20, 2012. these rules now select "taxable land" and therefore submit to the tax service provided is when either a service provider or to receive recipient outside India or in J & K.
once is determined taxable service, in terms of a place dedicated to the laws of the service, also issued outside the taxable territory, the issue of granting an exemption under 6A does not arise the base of the tax rules of service as the export of services at all.
This is because, once the service is to be provided outside of the taxable land identification, shipping department will 66B does not apply, and therefore there is no need to go to the service tax laws for an exemption as export service.
This is evident from clear if one were to reconsider the shipping section 66B that have been reproduced at the beginning of this article. Now let's take a look at the base 6A of the service tax rules that determine how long the service would be treated and export services Qaeda 6A (1) -
he provision of any service provided or agreed to be provided shall be treated as export of service when
a. Service provider is located in India.
b.Service recipient is located outside India
c. The service is not specified in the service section 66D of the Act
d. Place of service outside India
e. Payment for this service by the service provider in foreign convertible currency has been received. And f. service provider and the beneficiary of the service is not just the establishment of a distinct person in accordance with clause (b) of Explanation 2 of paragraph (44) of section 65B of the Act. Article 3 of the place dedicated to the laws of the service in 2012, which is presented here below, and you know that the space is the beneficiary of the service, and
only in cases where the place of reception service is not available in the normal course of action; must place of service is the site of the service provider in place of the provision Service rules provide an exception to the above general rule in some cases and for the brevity of this material, I am not discussing suchexceptions. Once a place of judgment outside India in terms of Article mentioned above, then automatically there will be a service tax and shipping section 66B will not allow any tax. When this is the case, where is the need for the application of the exemption rule 6A exported as a service? This can be illustrated by an example of a - service provider in India b - reception service outside India Scenario
1 - (a) is a chartered accountant providing audit services to B in London. According to the venue rules provide (Article 3), it should be a place dedicated location of the recipient of the service. In this case, because the place of service delivery in London, the shipping department is not satisfied, and thus what the service tax can be imposed
Scenario 2 - conducts IPL match in Australia. According to the rules of the place of provision (Article 6 of the POP) place of service must be the place where the event takes place at virtually any Australia. Since India is provided outside the service, but it does not meet the shipping department, and therefore what the applicable service tax. Before you enter the place of service rules in 2012, when the service provider is located in India and provides services to another person located outside India, and exemption from service tax is subject only to the conditions of a specific meeting in the export of service rules or any other notice of exemption applies to that class of service. now there is no such requirement in the light of the above discussion. The impact of the CENVAT Credit Article 5 of the rules of credit Cenvat do not apply because of the non - application 6A base of the service tax rules also implies, there is no concept of the so-called export of the service, and therefore there is no doubt the tax credit inputs paid for any services used to provide service We are outside the scope of the door shipping, and therefore can not be downloaded to the tax service. Once it appears that credit is not available, there is no doubt recover under Article 5 of CENVAT credit rules. Should the law makers corrected immediately this ambiguity and to ensure clarity and continued exemption in terms of export servants