Export of service

[Kavali Ramanjeneyulu]

Sir, my query is that all the conditions as prescribed in rule 6A of ST rules have been fulfilled except the last one is provider and recepient should not be establishments of the same company. As per section 66B of FA , tax is chargeable on service when both provider and recepient are located in the taxable territory. Then, under which section , export of service becomes taxable if tax is to be demanded on export of service due to non fulfillment of one condition. I request for reply sir.

AI Summary

Service Tax on Export Services Not Applicable if Rule 6A Conditions Unmet, Says Discussion on Same-Entity Transactions A user inquired about the applicability of service tax on export services when one condition of Rule 6A of Service Tax rules is unmet, specifically when the provider and recipient are establishments of the same company. Respondents clarified that under Rule 6A, such transactions are not considered exports because one branch cannot provide services to another of the same entity. The discussion emphasized that all conditions of Rule 6A must be fulfilled for export benefits. If not, the service is treated as provided within India. Some participants argued that if the recipient is outside the taxable territory, service tax should not apply, but this was contested by others citing legal precedents and rules.