Chapter: 3.4 Export of Services

Export of Services:

The taxable services listed above are to be treated as export of service on fulfilling various conditions listed here below:

1.    If service is
•    provided in relation to an immovable property situated outside India or
•    performed partly or wholly outside India
2.    Where the taxable service provided is used in or in relation to commerce or industry: The recipient of such service is located outside India, In case the recipient of service has any commercial or industrial establishment or office relating thereto in India, order for provision of such service is made from a commercial or industrial establishment or any office located outside India;
3.    Where the taxable service provided is used other than in or in relation to commerce or industry, the recipient of service is located outside India at the time of receipt of service.
4.    Service is provided from India and used outside India; and
5.    Payment for such service is received in convertible foreign exchange.
on Import of Services (Section 66A)

The service provider or person who exports the services can:

a.    Export any taxable service without payment of tax.
b.    Claim rebate of service tax, education cess and secondary & higher education cess paid on taxable service exported in terms of Rule 3 of Export of Service Rules, 2005; or
c.    Claim rebate of duty paid on excisable inputs and service tax, education cess & secondary & higher education cess paid on taxable input service used in providing taxable services exported in terms of Rule 3 of Export of Service Rules, 2005.