Service Tax on Services rendered in Bhutan by indian suppliers & GOI

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If services are rendered in Bhutan, what is the liability under Service Tax act 1) Both the receiver and provider are situated in bhutan 2) Receiver is in bhutan / provider is in India services related to repair of P&M

AI Summary

Debate on Indian Service Tax: Rule 8's Applicability for Services in Bhutan Analyzed Under Territorial Jurisdiction. A discussion on the applicability of service tax for services rendered in Bhutan by Indian suppliers focuses on the territorial jurisdiction of tax laws. One participant suggests that Rule 8 may apply, making the service taxable in India, but acknowledges the territorial nature of taxation. Another participant argues that under the Place of Provision Rules, services related to the repair of plant and machinery performed in Bhutan are not subject to Indian service tax, as the service location is outside India's taxable territory. Further clarification is sought regarding service tax on consultancy services and other activities.