TaxTMI 
TaxTMI 
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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 |
Service Tax on Services rendered in Bhutan by indian suppliers & GOI
28 May 2014 
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Place of Provision principle: services performed abroad fall outside domestic taxable territory, so no service tax liability.
Whether services rendered in Bhutan by Indian suppliers attract domestic service tax depends on the place of provision and territorial jurisdiction: repair of plant and machinery performed in Bhutan has its place of provision in Bhutan and so does not attract Indian service tax; if the serviced item is treated as immovable property, the location of that immovable property controls and, when in Bhutan, similarly yields no domestic service tax liability. (AI Summary)
Whether services rendered in Bhutan by Indian suppliers attract domestic service tax depends on the place of provision and territorial jurisdiction: repair of plant and machinery performed in Bhutan has its place of provision in Bhutan and so does not attract Indian service tax; if the serviced item is treated as immovable property, the location of that immovable property controls and, when in Bhutan, similarly yields no domestic service tax liability. (AI Summary)