Rule 3 - Export of taxable service

Export of Services: conditions treating cross border service provision as export, requiring recipient abroad and foreign exchange payment.

Export of taxable services is defined by reference to specified categories in clause (105) of section 65 and by place of performance or recipient location: services related to immovable property situated outside India, services performed outside India, and services provided to recipients located outside India qualify as export. Where the recipient has a commercial establishment in India, export treatment applies only if the order is placed from an establishment outside India. Export treatment requires receipt of payment in convertible foreign exchange and includes installations and vessels on the continental shelf and exclusive economic zone.