Erection and commissioning at overseas - regarding

[v.sridhar sridhar]

Dear Sir,

We would like to introduce ourselves is a Heavy CNC Machine Manufacturer and Situated in SIPCOT Industrial Estate. Irrungattukottai, Sriperumbudur - 602105.We have received Purchase order for supply ofCNC FHB Machine order from Bangalore Company in INRErection and commission order in INR and it was exported by the Bangalore Company to Kuwait (Overseas Company).

We have Erected and Commissioned the machine at Kuwait and we have raised the invoice for erection and commissioning in favour of Bangalore company in INR.

My question is that, whether we have to include the service tax or we have to raise the invoice with out service tax. We have not direct connection with the Kuwait Company and Purchase order received from Bangalore Company.

Please clarify with service tax notification for applying the service tax in the invoice.

Thanks and Regards

V.Sridhar

Chennai - 602 105.

Mobile No:9600030375

AI Summary

Service Tax Not Applicable on Erection Services in Kuwait: Export of Service Under Rule 6A and Rule 3 Clarified. A CNC machine manufacturer in Chennai received a purchase order from a Bangalore company for a machine that was exported to Kuwait. They inquired whether service tax should be applied to the invoice for erection and commissioning services performed in Kuwait. Respondents clarified that since the service was consumed in a non-taxable territory (Kuwait), it qualifies as an export of service. Therefore, no service tax should be applied according to Rule 6A of the Service Tax Rules, 1994, and Rule 3 of the Place of Provision of Rules, 2012, aligning with the government's policy not to export taxes.