Export Service Tax

[MUNIRAJ SRINIVASAN]

Dear Sir,

One my client has doing export service consultancy to Nepal and Bhutan if service tax is exempted under this countries ( Central Excise is exempted) if Service tax is also exempted

[YAGAY andSUN]

Service Tax in not exempted.  Place of Provision of Services would be applicable as per the very nature of the services being provided from taxable territory to non taxable territory.

AI Summary

Service tax exemption: export consultancy to non resident territories remains taxable under place of provision rules. Service Tax is not exempted for export consultancy to Nepal and Bhutan. Central excise exemption for exports does not automatically apply to service tax. Taxability is determined by the Place of Provision of Services rules and depends on the nature of the services rendered from a taxable territory to a non taxable territory.