Erection and commissioning at overseas - regarding

[Asked by Guest]

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 of CNC FHB Machine order from Bangalore Company in INR Erection 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

Export of services: erection and commissioning performed abroad is outside service tax and invoice should exclude service tax.
Erection and commissioning carried out in a foreign country for an overseas beneficiary, even when contracted through an Indian purchaser/exporter, constitutes export of services under the place of provision rules and Rule 6A; therefore the supplier should issue the invoice without charging service tax, documenting overseas performance and beneficiary.